On September 26, 2012, the board of directors of China Medicine Corporation voted in favor of pursuing voluntary deregistration of the Company's common stock. The Company intends to file a Form 15 on or about October 4, 2012.
On July 1, 2011, during the course of the on-going internal reviews by the management and the Audit Committee of the Company, the Board determined that the accounting and reporting errors at Guangzhou Konzern Medicine Co., Ltd., a wholly-owned subsidiary of the Company, also occurred in fiscal years 2006 and 2007 in addition to fiscal years 2008, 2009 and the quarterly periods in fiscal year 2010, as previously reported, and such errors materially impacted the previously issued financial statements. The Company currently is not able to and will not be able to quantify the impact of these errors and related accounting adjustments until the completion of its internal reviews but has concluded that the previously issued financial statements should no longer be relied upon.
On March 17, 2011, the Company notified Nasdaq of its intention to voluntarily withdraw its listing application and it received immediate confirmation of the acceptance of the withdrawal. The decision to withdraw at this time resulted from the inability of the Company to satisfy Nasdaq Listing Rule 5405(a) regarding the $4.00 minimum bid price for initial listing on the Nasdaq Global Market. The voluntary withdrawal does not preclude the Company from making an application for listing on the Nasdaq Stock Market in the future. The Company's common stock will continue to be listed on the OTC Bulletin Board, under the ticker "CHME".