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iSECUREtrac Deregisters Common Stock
By: Marketwired .
Feb. 7, 2013 01:40 PM
http://www.isecuretrac.com " target="_blank">
OMAHA, NE -- (Marketwire) -- 02/07/13 -- iSECUREtrac Corp. announced today that it had filed a Form 15 with the Securities and Exchange Commission in order to deregister its common stock under the Securities Exchange Act of 1934 and to immediately suspend its obligation to file periodic reports with the Securities and Exchange Commission. As a result of this action, the Company does not intend to file an annual report on Form 10-K for the year ended December 31, 2012.
According to Lincoln Zehr, Chief Executive Officer of iSECUREtrac, "The decision by our Board of Directors to deregister our common stock is an integral part of the Company's ongoing plan to build value for our common stockholders and reflects the fact that the substantial ongoing expenses associated with maintaining our status as a publicly reporting company are not justified by the minimal value the Company may realize from maintaining that status. Over the past eighteen months, the Board has overseen a complete overhaul of the Company's balance sheet by eliminating substantially all of our long-term debt and preferred equity and made several key changes in the Company's executive leadership. The result has been a refocus of the Company's mission and a refined strategic plan, including sales and marketing. The elimination of over $200,000 in annual out of pocket expenses incurred to comply with public company reporting and proxy solicitation requirements will complement these actions by improving the Company's liquidity and allowing us to deploy these resources to more productive uses."
"In making this decision, the Board took into consideration the fact the Company has essentially become a private company with nearly 84% of its common stock held by ten investors and has a public float of less than $3,000,000. The concentration of stock ownership is reflected by the lack of trading activity in our common stock. In addition, the Company does not expect to raise capital through the public equity markets."
Zehr concluded by saying, "While the Board of Directors and I realize this action will mean that our smaller shareholders will not have access to as much information about the Company, we believe that this is more than offset by the benefits of our decision to deregister our shares and will better position us to achieve our goal of improving the Company's long-term financial performance and shareholder value."
The Company will be holding a conference call on March 8, 2013 to discuss how this impacts common shareholders. If you have specific questions about the deregistration, please submit your question to firstname.lastname@example.org in advance of the meeting.
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