BOCA RATON, Fla.--By voluntarily deregistering its common stock, Devcon expects to redirect the roughly $1 or $2 million it would normally spend maintaining its market reporting and invest it in the company.
Ã¢â‚¬Å“This capital will be available to support our activities,Ã¢â‚¬Â said Robert Farenhem, president of Devcon, noting that the money saved on administrative, legal and accounting expenses Ã¢â‚¬Å“is actual cash, not an accounting line-item.Ã¢â‚¬Â
Devcon announced on Oct. 10 its decision to deregister, a move it is able to make because it has fewer than 300 shareholders. Farenhem characterized the public reporting process as cumbersome and costly, adding, Ã¢â‚¬Å“everyone reviews [the reporting documents] and everything gets second-guessed.Ã¢â‚¬Â
Devcon is listed now on the Pink Sheets. The deregistration was approved Oct. 1 at the companyÃ¢â‚¬â„¢s board of directors meeting. In a prepared statement, Richard Rochon, acting CEO of Devcon said, Ã¢â‚¬Å“Many small public companies are choosing to deregister because of similar concerns.Ã¢â‚¬Â The company, which has 140,000 residential and commercial customers in Florida, New York City and Staten Island, was moved from the Nasdaq exchange to the OTC exchange in May.
WhatÃ¢â‚¬â„¢s the plan going forward? Ã¢â‚¬Å“To focus on improving our operations and internal profitability.Ã¢â‚¬Â Farenhem said that he intends to Ã¢â‚¬Å“periodically issue press releases to provide performance information about the company.Ã¢â‚¬Â