Devcon moves from Nasdaq to OTC
BOCA RATON, Fla.--Devcon was preparing to move from the Nasdaq stock exchange to the OTC Bulletin Board on May 12 as Security Systems News went to press.
Ã¢â‚¬Å“This has nothing to do with the underlying health of the business,Ã¢â‚¬Â Robert Farenhem, president of Devcon, told Security Systems News.
Rather, he said, this move is necessitated by a breach of technical requirements to be listed on Nasdaq exchange, which he characterized as Ã¢â‚¬Å“harsh accounting requirements that security businesses suffer.Ã¢â‚¬Â
Devcon was notified in mid April that it was out of compliance with the Nasdaq requirement that it have a minimum of $10 million in shareholder equity.
Ã¢â‚¬Å“Two and a half years ago we had $2.5 million in RMR,Ã¢â‚¬Â Farenhem said, Ã¢â‚¬Å“and today we have $3.6 million in RMR Ã¢â‚¬Â¦ but over that period of time we have amortized about $40 million [for the purchase of Guardian International in 2007].Ã¢â‚¬Â
The OTC differs from Nasdaq in that it is Ã¢â‚¬Å“market-maker driven rather than open quotation-driven.Ã¢â‚¬Â The move will not affect the operation of Devcon, Farenhem said, but Ã¢â‚¬Å“it does have impacts on our capital structure and weÃ¢â‚¬â„¢re going to have to deal with that.Ã¢â‚¬Â
Devcon was to be delisted from Nasdaq on May 16. Should the transfer of the companyÃ¢â‚¬â„¢s stock to OTC not be complete by that date, the companyÃ¢â‚¬â„¢s stock would be Ã¢â‚¬Å“quoted on the Pink Sheets, an electronic quotation service for securities traded over the counter, until such clearance is obtained.Ã¢â‚¬Â