NEW YORK, Nov. 28, 2011 (GLOBE NEWSWIRE) -- Zhiguo Fu, Chairman of Advanced Battery Technologies, Inc. (Nasdaq:ABAT), today issued the following letter to the shareholders of ABAT:
"Fellow Shareholders:
"Since March 2011 ABAT has been afflicted by the concerted actions of a group of short sellers. After establishing short positions on our shares, they published a series of articles making allegations of misconduct by ABAT's management that were fabrications and distortions. The result was a great loss of value to the majority of ABAT's shareholders, which was compounded when the class action bar filed lawsuits against us based again on the same sophistic allegations. Unfortunately, NASDAQ chose to abet this conduct by initiating an investigation based on the short seller allegations. When NASDAQ inquired regarding the allegations, we provided complete detailed rebuttals, and NASDAQ has not made further inquiry regarding any of the short seller allegations.
"At the end of the summer, however, as stories circulated regarding collusion between a small number of Chinese companies and their bankers, NASDAQ decided that, solely because we are Chinese, we should be required to provide an extraordinary level of confirmation from our banks. Despite the lack of any evidence of wrong-doing on our part, NASDAQ insisted that we approach our banks, inform them that our U.S. regulators consider them untrustworthy, and ask them to permit our auditors to "look over their shoulders," as it were, while they prepare bank confirmations. Initially NASDAQ insisted that this degrading procedure be conducted at the highest level of the bank. After we obtained written refusals from each of our banks, NASDAQ agreed to have the process carried out at our local bank branches.
"Unfortunately, on the same day that NASDAQ made this concession, our Chief Financial Officer, who had headed our accounting and finance operations since we formed the company in 2002, resigned. The pressure brought by the short sellers, class actions and regulators caused her to decide she should devote her time to ailing members of her family. Her resignation was immediately followed by that of our Controller. I myself have had to seek medical assistance for the effects on my health of this assault on our integrity and our efforts at being good U.S. corporate citizens. And so we have been unable to satisfy NASDAQ's demands.
"Since coming to the U.S. in 2004, ABAT and I have consistently complied with all U.S. laws and regulations. We have worked with great enthusiasm to try to reward our shareholders for their loyalty to our company. Today, unfortunately, I have lost confidence in the integrity of the U.S. capital markets, as I see how the reckless actions of a few persons have negated all of our good efforts.
"But I remain committed to our shareholders. I believe that their faith in our company should be rewarded. So I write this letter to promise our shareholders that in the coming months I will take the actions that I believe are necessary to reward the loyalty of our shareholders."
Zhiguo Fu