NASDAQ Delisting Threat Jeopardizes Chinese Rescue of A123 Systems

National Legal & Policy Center ^ | August 23, 2012 | Paul Chesser

[jazusamo]

Two weeks ago the mainstream and clean tech advocacy media proclaimed that taxpayer-subsidized, failing electric vehicle battery maker A123 Systems would be saved by a deal with a Chinese company.

Since then the Massachusetts-based manufacturer’s stock price sank below what had been its previous low of 44 cents. This morning it is down to 38 cents, and yesterday the company received a delisting notice from the NASDAQ. So what happened?

There could be several reasons why the recipient of hundreds of millions of U.S. stimulus dollars hasn’t impressed Wall Street with its pending bailout from Wanxiang Group. The deal is not binding, so obviously either party could back out.

One possible reason it may fail is that the U.S. and Chinese governments must approve it, which are uncertainties. China will probably embrace it, which will be discussed momentarily. But the fact that so much U.S. government money has been poured into A123, only to see the company possibly become the property of a Communist competitor, may not bother the Obama administration much but a lot of Congress members will certainly scrutinize the plan.

Last week Republican Sens. John Thune of South Dakota and Charles Grassley of Iowa had some tough questions for Energy Secretary Steven Chu about A123.

[jazusamo]

Even more, it screams loudly about the ineptness, cronyism and poor judgment within the Obama administration’s and Department of Energy’s Green stimulus program.

I'd add corruptness but well said by Chesser.

This is the norm for Obama and his administration since taking office.

[isthisnickcool]

Someone needs to start talking about how Obama’s SEC and the DTC have been systematically destroying the small cap markets where new companies raising money sink or swim. It is sickening and disgusting. Obama is killing off American business in droves and the idiots in Congress don’t have a clue about what is happening.