Canadian biz takes shares off TSX Exchange
EDMONTON, Alberta - Citing expenses and strict regulations, Voxcom, a residential and commercial security provider, has taken its shares off the TSX Venture Exchange, CanadaÃ¢â‚¬â„¢s venture capital marketplace.
The move had been publicized through the companyÃ¢â‚¬â„¢s press releases over the past few months, but shareholders had to approve the proposal. They did so at a shareholder meeting in the beginning of May.
Ã¢â‚¬Å“We effectively have gone private through this transaction,Ã¢â‚¬Â said Brad Sparrow, president of Voxcom.
Sparrow said reasons for the move ranged from the vast expense required as a publicly traded company to the strict regulations enforced by the TSX Exchange.
Ã¢â‚¬Å“There are lots of regulations and lots of costs,Ã¢â‚¬Â he said.
Sparrow said it was no longer financially viable for his company to remain a public entity. Average shares were being traded for roughly 50 cents Canadian. It was partly because of the low value of the companyÃ¢â‚¬â„¢s stock that Sparrow thought the company never got the attention it deserved.
Ã¢â‚¬Å“Small public companies donÃ¢â‚¬â„¢t create enough attention,Ã¢â‚¬Å“ he said.
Although Jack Mallon, an industry analyst with Mallon Associates, could not comment specifically on VoxcomÃ¢â‚¬â„¢s action, he did say he expects to see more smaller alarm companies moving out of the public sector
To return to a private status, Voxcom had to purchase its shares back from holders and it did so at $1.03 per share. The total amount Voxcom paid or the total numbers of shares redeemed was not released.
Sparrow said that the only difference today in the companyÃ¢â‚¬â„¢s day-to-day business is its trading status.
Ã¢â‚¬Å“IÃ¢â‚¬â„¢m pleased to report itÃ¢â‚¬â„¢s business as usual,Ã¢â‚¬Â Sparrow commented. Ã¢â‚¬Å“Now we can focus on the business and not the regulations.Ã¢â‚¬Â