Board Looking To Take Harvey Private
By Alan Wolf And Jeff Malester -- TWICE, 9/19/2005
LYNDHURST, N.J. — Harvey Electronics' board is looking to take the company private.
The New York metro area A/V specialty chain is asking shareholders to approve a series of stock transactions that would allow the company to be de-listed from the NASDAQ stock exchange and to de-register its common stock.
Harvey shares would then be traded in private over-the-counter transactions via the “Pink Sheets” electronic quote system for broker-dealers.
According to a filing with the U.S. Securities and Exchange Commission, the move could save the company over $500,000 in Sarbanes-Oxley compliance costs plus other reporting fees associated with being a public company.
Compliance will divert resources from a costly computer conversion planned for next year, the board argued, and will distract management from its day-to-day duties.
Harvey has not received significant benefits from being a public company and has failed to provide increased value to its shareholders, the filing stated.
The requested stock transactions — a one-for-10 reverse stock split followed by a 10-for-one forward stock split — would reduce the number of shareholder to less than 300 from the current 352. Shareholders will vote on the proposal at Harvey's annual shareholders meeting, scheduled for Oct. 21.
No related content found.
Featured Company
-
Brightpoint
BrightPoint is a global leader in mobile device lifecycle services. We provide a full suite of end-to-end supply chain and customization solutions to manufacturers, retailers and carriers in the mobile device industry. In a world that is increasingly connected with ever-evolving ..more
VIEW ALL GALLERIES