Bestway, Inc. Announces Delisting By Nasdaq of Its Common Stock
20 Diciembre 2004 - 3:30PM
PR Newswire (US)
Bestway, Inc. Announces Delisting By Nasdaq of Its Common Stock
DALLAS, Dec. 20 /PRNewswire-FirstCall/ -- Bestway, Inc.
(NASDAQ:BSTW) has been notified by NASDAQ that its common stock
will be delisted from the NASDAQ SmallCap Market effective at the
opening of the market on Tuesday, December 21, 2004. NASDAQ has
advised the Company that the common stock will be delisted because
of the Company's failure to certify its compliance with the new
audit committee composition, audit and nominating committee
charters, executive sessions and code of conduct requirements, as
set forth in NASDAQ Marketplace Rules 4350(d)(2)(A), 4350(d)(1),
4350(c)(4)(B), 4350(c)(2) and 4350(n), respectively. The Company
had disclosed in November 2004 that it had received a letter from
NASDAQ indicating that the Company was not in compliance with the
certification requirement and that the Company would request a
hearing with the NASDAQ Hearing Panel on the matter. The Company
requested a written hearing, which was held on December 9, 2004. In
connection with the hearing, the Company discussed its intent to go
private with NASDAQ and described the status of the transaction.
The Company requested that NASDAQ grant an extension to the Company
regarding the listing requirements until the Company's
going-private transaction was completed. This appeal was denied by
NASDAQ. Prior to undertaking the going-private transaction, the
Company was in the process of complying with the NASDAQ listing
requirements, including the matters set forth in the certification
requirements described above. NASDAQ has also advised the Company
that its securities may be immediately eligible for quotation on
the OTC Bulletin Board, effective with opening of business on
December 21, 2004, provided a market maker enters a quote on the
first day of eligibility. The OTC Bulletin Board symbol assigned to
the company is BSTW. In addition, the Company's common stock may
become quoted in the Pink Sheets upon application by a market
maker. Because the Company intends to effectuate the going-private
transaction, the Company will cease its NASDAQ listing and will not
appeal the NASDAQ ruling at this time. The Company had previously
announced that it had filed a preliminary proxy statement and
Schedule 13E-3 with the Securities and Exchange Commission with the
intended result that it will cease to be a publicly held company
and will become a private corporation. "As a private corporation,
the common stock would not be eligible for NASDAQ listing,"
commented David A. Kraemer, President and Chief Executive Officer.
"By terminating the registration of our common stock and relieving
ourselves of the reporting requirements of the SEC and other
obligations, we estimate that we will save approximately $775,000,
consisting of $115,000 in fees historically incurred, $590,000 in
fees that would otherwise be expected to be incurred in order to
comply with Section 404 of Sarbanes Oxley, and $70,000 in fees that
would otherwise be expected to be incurred in order to comply with
other provisions of Sarbanes- Oxley once the termination of the
registration becomes effective. We believe that this decision is in
the best interest of our shareholders and the Company and remain
committed to the going-private transaction." The Company is
currently awaiting completion of the SEC review of its proxy
statement and Schedule 13E-3 before proceeding with a
reverse/forward stock split and subsequent termination of its
registration. All documents filed with the SEC that describe the
proposed going-private transaction can be seen by going to
http://www.bestwayrto.com/ under Investor Relations, SEC Filings.
All shareholders will receive a definitive proxy statement once the
SEC has completed its review process. The Company has been engaged
in the rent-to-own industry since 1987. The Company owns and
operates a total of sixty-nine stores located in the states of
Alabama, Arkansas, Georgia, Mississippi, North Carolina, South
Carolina and Tennessee. The stores' operations are controlled and
monitored through the Company's management information system
networked with its home office in Dallas, Texas. This press release
and the guidance above contain various "forward-looking statements"
that involve risks and uncertainties, including forward-looking
statements regarding: the delisting by NASDAQ of the Company's
common stock, the subsequent quotation of the common stock on the
OTC Bulletin Board and/or the Pink Sheets, completion of the
"reverse/forward stock split" and termination of the registration
of the Company's common stock. These forward- looking statements
involve risks and uncertainties that may cause actual results to
differ from these expectations. Factors that could cause actual
results to differ include: the decision by one or more market
makers to enter quotes on the Company's common stock on the first
day of eligibility, the Company's ability to successfully complete
the reverse/forward stock split, the Company's ability to reduce
the number of shareholders to fewer than 300 and terminate the
registration of its common stock, the Company's ability to achieve
the anticipated cost savings upon termination of the registration
of its common stock, and the risk factors set forth from time to
time in the Company's filings with the Securities and Exchange
Commission. DATASOURCE: Bestway, Inc. CONTACT: Beth Durrett, Chief
Financial Officer of Bestway, Inc., +1-214-630-6655, or Web site:
http://www.bestwayrto.com/
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