Devcon deregisters

Monday, December 1, 2008

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.

“This capital will be available to support our activities,” said Robert Farenhem, president of Devcon, noting that the money saved on administrative, legal and accounting expenses “is actual cash, not an accounting line-item.”

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, “everyone reviews [the reporting documents] and everything gets second-guessed.”

Devcon is listed now on the Pink Sheets. The deregistration was approved Oct. 1 at the company’s board of directors meeting. In a prepared statement, Richard Rochon, acting CEO of Devcon said, “Many small public companies are choosing to deregister because of similar concerns.” 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.

What’s the plan going forward? “To focus on improving our operations and internal profitability.” Farenhem said that he intends to “periodically issue press releases to provide performance information about the company.”