Proxim Wireless seeks to delist itself

proxim-wirelessCiting the expense of complying with its obligations under regulations of the Securities and Exchange Rules, the Sarbanes-Oxley Act, and Nasdaq’s own listing requirements, Proxim Wireless said Thursday it intends to voluntarily delist its stock from Nasdaq.

The Milpitas supplier of high-speed wireless communications equipment, said it anticipates the last day of trading for its common stock on Nasdaq’s Capital Market would be April 22. The company anticipates its shares will trade over-the-counter under its present symbol, PRXM. Barring that, they would be found in the Pink Sheets.

After the delisting, Proxim said it would immediately file notice with the SEC to terminate the registration of its common stock, suspending its obligation to file most periodic reports with the SEC.

Among the factors the board considered before making its decision were:

  • the substantial management time and effort required to comply with these obligations, which could be better spent implementing Proxim’s business strategy and improving operating results
  • the limited capital available to Proxim in the public equity markets and restrictions imposed on raising additional capital
  • the limited trading volume and liquidity of the common stock
  • the possibility that Proxim would be involuntarily delisted from Nasdaq due to failure to comply with continued listing standards
  • the possibility of avoiding a reverse stock split that otherwise would have been required to regain compliance with Nasdaq’s minimum bid price requirement

One factor not cited in the company’s press release Thursday was the feelings of its largest shareholder, Lloyd Miller, who  owns about 15 percent of the company’s outstanding shares and holds warrants to acquire another 5 percent, according to the company’s annual 10-K report filed Tuesday.

Miller lent the company money in July, giving him rights as a creditor, and is asking for two of the four independent director seats on the company’s board.

 

Tags: , , , ,

 

Share this Post



 
 
 
  • Bart

    Hey Jack,

    Check where Mike Fister now hangs around (for a laugh).
    He’s CEO at Stream Processors. Quite a step up.

 
 
css.php