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Sarbanes-Oxley News & Developments
Comtrex Files To Deregister Its Common Stock With The SECAfter analysis of expected cost and time Comtrex believes it will be better as a private company.
> > Comtrex Systems Corporation (COMX) has filed with the SEC to deregister its common stock and suspend its reporting obligations under the SEC. The company expects deregistration to be effective within 90 days of filing.
Comtrex expects this to be cost saving as a result of SEC periodic reporting requirements. The Company securities will no longer be quoted on the Over The Counter Bulletin Board but anticipates its securities may be quoted on the Pink Sheets, a service that does not require reports to the SEC.
This decision was made due to: (1)the cost connected with filing reports to the SEC, (2)increase in costs associated with being public and new regulations now required under the Sarbanes-Oxley Act of 2002, (3)market value that public markets are applying to companies, (4)benefits of management to spend less time on reports which will now allow more time to the company operation, (5)the common stock is very thinly traded, (6)the lack of analyst coverage and minimal liquidity for the common stock.
Comtrex will continue to hold annual meetings and provide shareholders with financial information.
After analysis of expected cost and time, as well as other relevant factors, Comtrex believes it will be better positioned as a private company.
Source: Hoovers article
Published:2003-06-07
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