KIT digital to Change Auditors and Announces Delisting From NASDAQDec 18, 2012 (Marketwire via COMTEX) --KIT digital, Inc. (NASDAQ: KITD), a leading video management software and services company, announced today that it has dismissed Grant Thornton LLP as the Companys independent auditor.
The Company is in the process of engaging a new audit firm and anticipates an announcement about the appointment of a new auditor in the near future.
As previously disclosed, KIT digital is undertaking a restatement of the Companys historical financial statements for the years ended December 31, 2009, 2010 and 2011, each of the three quarters in 2009, 2010 and 2011, and each of the quarters ended March 31, 2012 and June 30, 2012. The restatement, once completed, will be subject to audit by the Companys independent public accounting firm.
Additionally, the Company announced today that its common stock would be delisted from The NASDAQ Stock Market effective at the opening of business on December 21, 2012. Trading of the Companys common stock is currently subject to a trading halt, which the Company does not expect to be lifted prior to the delisting of the common stock.The delisting is precipitated by the Companys determination not to pay certain fees based on its current circumstances and outlook, which include: (1) the previously disclosed listing violation for its failure to timely file its third quarter Form 10-Q, (2) likely delisting in early 2013 due to failure to hold a 2012 annual meeting, and (3) the possible failure to become compliant in SEC reporting in sufficient time to avoid delisting.The Company does not intend to request an appeal hearing regarding NASDAQs delisting determination.
The Company currently intends to submit an application in order for the Companys common stock to be listed on the OTC Pink Sheets/OTC Pink Marketplace, including submission of a Financial Industry Regulatory Authority (FINRA) Form 211. The Companys common stock would begin trading on the OTC Pink Sheets/OTC Pink Marketplace following approval by FINRAs OTC Compliance Unit of the Companys Form 211 and at least one market maker deciding to quote the Companys common stock.The OTC Pink Sheets/OTC Pink Marketplace is a market tier operated by the OTC Market Group Inc. for over-the-counter traded companies.The delisting and transition to the OTC Pink Sheets/OTC Pink Marketplace does not change the Companys obligations to file periodic and other periodic reports with the SEC under applicable federal securities laws.There is no assurance that the OTC Compliance Unit will approve the Companys Form 211 in view of the pending restatement of the Companys financial statements or that any market maker will decide to quote the Companys common stock following delisting by NASDAQ or at all, and thus there is no assurance that the Companys common stock will become eligible to trade on the OTC Pink Sheets/OTC Pink Marketplace.
Important Caution Regarding Forward-Looking Statements
This release contains certain forward-looking statements. These statements can be identified by the use of words or phrases such as believes, estimates, expects, intends, anticipates, projects, plans and variations of these words or similar words. Important risks, uncertainties and other important factors that could cause actual results to differ materially include, among others, the risk that additional information may become available in preparing and auditing the financial statements that would require the Company to make additional corrections, the time and effort required to complete the restatement of the financial statements, the ramifications of the Companys inability to timely file periodic and other reports with the SEC, including the risk that the Companys common stock will not be eligible to trade on the OTC Pink Sheets/OTC Pink Marketplace or that the Company determines not to seek to make the shares of common stock eligible to trade on the OTC Pink Sheets/OTC Pink Marketplace, the risk of engaging a new audit firm and the terms thereof, and the risk of litigation or governmental investigations or proceedings relating to these matters. Certain risks and uncertainties related to the Companys business are or will be described in greater detail in the Companys filings with the SEC. Except as required by applicable law, the Company is not under obligation to (and expressly disclaims any such obligation to) update its forward-looking statements whether as a result of new information, future events or otherwise.
About KIT digital, Inc.
KIT digital (NASDAQ: KITD) is a leading video management software and services company. Cosmos and Cloud, the Companys video asset management systems, enable leading broadband media companies to produce, manage and deliver multiscreen socially-enabled video experiences to audiences wherever they are. KIT digital services nearly 2,500 clients in 50 countries including some of the worlds biggest brands, such as Airbus, The Associated Press, AT&T, BBC, BSkyB, Disney-ABC, Google, HP, Mediaset, MTV, News Corp, RCS Media Group, Sky Deutschland, Sky Italia, Telecom Argentina, Telecom Italia, Telefonica O2, Universal Studios, Verizon, Vodafone, VRT and Volkswagen. KIT digital maintains headquarters in New York City and offices in more than a dozen countries around the world. Visit the company at www.kitd.com.
KIT digital Media Contact:
Werbayne McIntyre
Director, Marketing
Tel. 44 1904 438000
Mobile 44 7590 554 845
KIT digital Investor Contact:
Murray Arenson
Managing Director, Financial Strategy
Tel. 1-646-553-4900
