LOUD Technologies – the company behind Alvarez, Ampeg, Crate, EAW, Mackie, Martin Audio and TAPCO gear – has announced that it has submitted written notice to the NASDAQ Stock Market of its intention to voluntarily delist its common stock from NASDAQ.
“Due to our small market capitalization, we have not enjoyed many of the benefits traditionally associated with a NASDAQ listing and Exchange Act registration,” said Rodney E. Olson, Chief Executive Officer of the Company. “Our Board believes that shareholder value is best served through reducing costs and focusing on our business plan rather than maintaining our current public reporting status and NASDAQ listing.”
In deciding to delist the Company’s common stock from NASDAQ and deregister its common stock under the Exchange Act, the Board of Directors concluded that the costs of maintaining its listing on NASDAQ and remaining a public company outweigh the benefits to the Company and its shareholders on continued NASDAQ listing and Exchange Act registration.
In addition to this news, we’ve heard rumors that Loud is having trouble with its suppliers.
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Among the factors the Board considered were:
- the costs, and expenses, both direct and indirect, associated with the Company’s stock being listed on NASDAQ and compliance with its obligations under the Exchange Act and the Sarbanes-Oxley Act of 2002;
- the substantial management time and effort required to maintain NASDAQ listing of the Company’s stock and Exchange Act registration, which would be better spent implementing the Company’s goals and strategies;
- the limited trading volume and liquidity of the Company’s stock on the NASDAQ;
- the likelihood that the Company will fail to meet the NASDAQ financial tests for continued listing of its common stock under NASDAQ Rule 4310(c)(3)(C), in any event, based on its financial results for 2008; and
- the lack of analyst coverage for the Company’s stock.