Rodman and Renshaw on NIVS 7/22/2011
NIVS: Terminating Coverage
Terminating Coverage: Effective immediately, we are terminating coverage on NIVS IntelliMedia Technology Inc. to better allocate resources within our coverage universe. We put our rating under review on March 28, 2011 due to the resignation of the company’s auditor Malone Bailey LLP and the subsequent halting of the stock by NYSE. Investors should not rely on our previously published financial projections.
NYSE Amex Panel Decision: On June 22, 2011, the company announced that it received notification from NYSE Amex’s Listing Qualification Panel that its request for continued listing with NYSE Amex has been denied following a hearing on June 15, 2011 and NIVS shares have been delisted the day after the notification.
Special Committee: On March 28, 2011, the Board formed a special committee to investigate the allegations of the company’s former independent auditors. On June 15, the board approved special committee’s certain recommendations including suspending two employees, outsourcing its accounting functions, and consolidating bank accounts. On July 11, two of the company’s directors resigned citing the delay in implementing special committee’s recommendations. Additionally, the special committee’s legal counsel, Sidley Austin, LLP and accounting advisors, Deloitte Financial Advisory Services, LLP have terminated their engagement.
Company Description: NIVS IntelliMedia Technology Group, Inc (NIVS.PK), a US listed company headquartered in Huizhou, Guangdong Province of China, is a consumer electronics provider in China engaged in designing, manufacturing, and selling standard / intelligent audio & video products and 2G/3G handsets. The company’s audio & video product universe includes stereo systems, digital video broadcasting (DVB) set-top boxes, MP3/MP4 players, LCD televisions, DVD players, GPS systems, remote controls and headphone sets. Most of NIVS’ intelligent A / V products have utilized the company’s proprietary Chinese speech interactive technology in order to allow users to control the products by voice commands.
Investment Risks: (1) Intense Competition (2) Country Risk (3) Material weakness over internal control and financial reporting (4) Volatility in raw material prices. (5) Regulatory Risks.
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This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.
Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.
Rodman & Renshaw, LLC may make a market in the securities being discussed.
Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).
Member FINRA.
Member SIPC.
Notice Regarding Privacy and Confidentiality:
This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.
Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.
Rodman & Renshaw, LLC may make a market in the securities being discussed.
Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).
Member SIPC.
Member FINRA.
