Another MN Business Delists Shares, “Goes Dark”
ProUroCare Medical, Inc., an Eden Prairie-based developer of products that detect prostate disease, recently announced plans to delist its stock, a move often referred to as “going dark.”
The company’s stock has been trading on the OTCQB, a so-called “over-the-counter exchange” that typically features shares of smaller companies. Such exchanges are subject to some regulatory reporting requirements but don’t have minimum price requirements like Nasdaq or the NYSE.
Now, ProUroCare Medical said it intends to file a notice with the U.S. Securities and Exchange Commission on Friday, notifying regulators of its plans to delist its stock altogether.
The company said it is “going dark” in an effort to “reduce the legal, accounting, and administrative costs associated with being a reporting company under the Exchange Act and to allow the company to explore options for a refinancing, restructuring, or a sale of the company or its assets without the burdens of its current public reporting status.”
“There is no assurance that any such transaction will be completed,” the company cautioned.
CEO Stanton Myrum said in a statement that the decision to go dark was made “after careful consideration of the advantages and disadvantages of being a 'fully reporting' public company, particularly in light of our limited financial resources, market capitalization, low stock price, and trading volumes.”
The company expects its “deregistration” to cut annual operating expenses by $200,000 to $250,000.
The move was also driven by the fact that the company now has fewer than 300 shareholders.
Granite City Food & Brewery, a St. Louis Park-based restaurant chain, also recently announced plans to go dark. Meanwhile, Minneapolis-based Dolan Company was recently booted off the New York Stock Exchange for failing to meet minimum requirements. That company, however, continues to list its shares on an over-the-counter market.