Syms plans to delist from NYSE & SEC deregistration
22 Dec '07
3 min read
Syms Corp a leading off-price retailer, announced that it would voluntarily delist its shares of common stock from trading on the New York Stock Exchange and, based upon ownership by fewer than 300 holders of record of its shares, deregister its common stock under the federal securities laws.
Once the shares are delisted from the NYSE, the Company expects that its shares will trade on the Pink Sheets, LLC (Pink Sheets), an electronic network through which participating broker-dealers can make markets, and enter orders to buy and sell shares of companies.
At least one registered broker-dealer has indicated an intention to sponsor the Company's shares on the Pink Sheets, and to act as a market maker following delisting. The Company anticipates that there will be several additional market makers for the Company's shares following delisting.
The decision was made by the Company's full Board with the advice of the Company's financial advisor and after review by a Special Committee of independent directors of the Company's decision to delist. That Committee relied in part on the advice of independent financial and legal advisors in making its decision.
The Company is taking these actions principally to minimize financial and administrative burdens associated with being a Securities and Exchange Commission (the "SEC") reporting company and regulatory compliance under the Sarbanes-Oxley Act of 2002.
The Company estimates that the savings in both direct and indirect costs associated with deregistration will be substantial on an ongoing basis and that the direct recurring annual savings will exceed $750,000.