SAI to deregister stock
January 23, 2003
ARLINGTON HEIGHTS, Ill. - Embattled wholesale monitoring firm Security Associates International announced that it was moving forward with plans to deregister its stock from the publicly traded markets.
The company, faced with a slumping stock price and low trading levels, filed a Form 15 with the Securities and Exchange Commission to deregister its common stock, which means, effective immediately the company was no longer required to submit its regulatory filings with SEC.
Ã¢â‚¬Å“In some respects itÃ¢â‚¬â„¢s a prudent decision for the company,Ã¢â‚¬Â said John Mack, president and chief executive officer of USBX Advisory Services. Ã¢â‚¬Å“They can focus on running the business and not spending too much money on public reporting.Ã¢â‚¬Â
Officials at the company said one factor in the decision was an anticipated substantial increase in SAIÃ¢â‚¬â„¢s legal and accounting costs under the Sarbanes-Oxley Act, which makes more stringent the requirements of public companies. Under those new guidelines the expense of being a publicly traded entity could be close to $1 million for a company the size of SAI, Mack said.
In a press release, SAI officials said that its board of directors took several other factors into consideration, including the reduced number of the companyÃ¢â‚¬â„¢s stockholders and the fact that the companyÃ¢â‚¬â„¢s stock is thinly traded.
Ã¢â‚¬Å“This action will allow management of the company to refocus its attention and recourses on implementing the companyÃ¢â‚¬â„¢s business plan and exploring financing and strategic alternatives for the business,Ã¢â‚¬Â company officials said in a press release.
The deregistration was expected to take effect in about 90 days, the company said.
In mid-December, SAI was notified that its stock would be stricken from its registration on the American Stock Exchange due to low trading levels. The company was assigned a new OTC Bulletin Board trading symbol of SECA.