Canadian biz takes shares off TSX Exchange

Voxcom goes private after years of operating as a public company
Tuesday, June 1, 2004

EDMONTON, Alberta - Citing expenses and strict regulations, Voxcom, a residential and commercial security provider, has taken its shares off the TSX Venture Exchange, Canada’s venture capital marketplace.

The move had been publicized through the company’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.

“We effectively have gone private through this transaction,” 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.

“There are lots of regulations and lots of costs,” 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 company’s stock that Sparrow thought the company never got the attention it deserved.

“Small public companies don’t create enough attention,“ he said.

Although Jack Mallon, an industry analyst with Mallon Associates, could not comment specifically on Voxcom’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 company’s day-to-day business is its trading status.

“I’m pleased to report it’s business as usual,” Sparrow commented. “Now we can focus on the business and not the regulations.”