April 26, 2008 (USA)
Jaclyn Inc announced that it has notified the American Stock Exchange of its intention, subject to meeting certain conditions, to withdraw its shares of common stock from listing on the American Stock Exchange.
As the Company announced in December 2007, a special committee of independent directors unanimously recommended, and its entire Board of Directors approved, plans to cease the registration of the Company's common stock under federal securities laws and to withdraw its shares of common stock from listing on the AMEX.
The Company indicated that it was taking these steps to avoid the substantial and increasing cost and expense of being a Securities and Exchange Commission reporting company and of regulatory compliance under the Sarbanes-Oxley Act of 2002, and to focus the Company's resources on increasing long-term stockholder value.
The Company further announced that it anticipates savings of approximately $500,000 on an annual basis as a result of the proposed deregistration and delisting transaction, as well as an additional one-time savings during its current fiscal year for initial costs of compliance with the internal control provisions of the Sarbanes-Oxley Act.
In order to deregister its shares of common stock, the Company will need to reduce its number of stockholders of record to below 300. To accomplish this, the Board of Directors has proposed to amend the Company's certificate of incorporation to effect a reverse stock split, which would immediately be followed by a forward stock split.
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