Corrpro Announces Termination of SEC Reporting and Delisting From AMEX
June 29 2005 - 10:15AM
PR Newswire (US)
Corrpro Announces Termination of SEC Reporting and Delisting From
AMEX MEDINA, Ohio, June 29 /PRNewswire-FirstCall/ -- Corrpro
Companies, Inc. (AMEX:CO/PinkAMEX:Sheets), announced today that it
filed an application to voluntarily delist its common shares from
the American Stock Exchange ("AMEX") with the AMEX and the
Securities and Exchange Commission (the "SEC") and filed a Form 15
with the SEC to deregister its Common Shares under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). As indicated
in a press release issued by the Company on March 21, 2005, the
Company's Board of Directors began consideration of the decision to
deregister and delist the Common Shares as a result of, among other
things, the uncertainty over the Company's continued listing on the
AMEX and the ongoing costs of being a reporting company.
Immediately upon the filing of Form 15, the Company will no longer
be obligated to file certain reports with the SEC, including Forms
10-K, 10-Q and 8-K. The Company, however, intends to voluntarily
file a Form 10-K for the fiscal year ended March 31, 2005. Based on
the filing of the application for delisting and the Form 15, the
AMEX has indicated that it will suspend trading of our common
shares on the AMEX effective immediately. The Company anticipates
that the Common Shares will continue to be quoted on the Pink
Sheets; however, the Company can give no assurances that the Common
Shares will continue to be so quoted. The Pink Sheets system is a
centralized quotation service that provides pricing and financial
news and information for the over-the-counter securities markets
and collects and publishes market maker quotes in real time
primarily through its website, http://www.pinksheets.com/. Joseph
P. Lahey, the Company's President and CEO, commented that "the
Company's Board of Directors unanimously approved the delisting and
deregistration of the Common Shares. The costs and administrative
burdens associated with being a reporting company have
significantly increased, particularly in light of new SEC and
Sarbanes-Oxley requirements. In light of the lack of an active
trading market for the Company's stock and the Company's intent not
to access the public capital markets for its foreseeable financing
needs, the advantages of being a reporting company are outweighed
by the significant external and internal costs associated with the
reporting requirements for public companies. We believe that
delisting and deregistering will significantly reduce expenses,
avoid potentially higher future expenses, enable our management to
focus more of its time on operating the Company, and create greater
value for our shareholders." The deregistration and delisting of
the Common Shares was unanimously recommended to the Board by a
special committee of independent directors. The special committee
engaged and consulted an independent financial advisor and its own
legal counsel prior to making its recommendation. Notwithstanding
the Company's decision to delist and deregister the Common Shares,
the Company currently intends to continue to hold annual meetings
and to provide its shareholders and the interested public with
audited financial statements on an annual basis. The Company also
intends to comply with all information and notice requirements
under Ohio and other applicable law and the Company's articles of
incorporation and code of regulations. The Company does not believe
that delisting from the AMEX and deregistering under the Exchange
Act will materially impact its current operations, current
relationships with employees, customers or suppliers or its
existing financing arrangements. Corrpro, headquartered in Medina,
Ohio, with over 30 offices worldwide, is the leading provider of
corrosion control engineering services, systems and equipment to
the infrastructure, environmental and energy markets around the
world. Corrpro is the leading provider of cathodic protection
systems and engineering services, as well as corrosion protection
services relating to coatings, pipeline integrity and reinforced
concrete structures. Except for historical information, the matters
discussed in this press release are forward-looking statements
relating to the business of the Company. The forward-looking
statements are made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Words such as
"anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates" "will" or variations of such words and similar
expressions are intended to identify such forward-looking
statements. The Company believes that the following factors, among
others, could affect its future performance and cause its actual
results to differ materially from those that are expressed or
implied by forward-looking statements, or diminish the liquidity of
its Common Shares: actual financial results of the Company; failure
to have at least one market maker continue to make a market in the
Company's Common Shares on the Pink Sheets following delisting;
denial of the application to voluntarily delist from AMEX; denial
of the Form 15 to deregister under the Exchange Act; becoming
subject to the Exchange Act in the future; the actual amount of
cost savings and other benefits from being a non-reporting company;
fluctuations in foreign currency exchange rates; the impact of
mark-to-market accounting treatment of outstanding warrants;
compliance with an SEC injunction related to accounting
irregularities; the Company's mix of products and services; the
timing of projects; the availability and value of larger projects;
qualification requirements and termination provisions relating to
government projects; the impact of inclement weather on the
Company's operations; the impact of energy prices on the Company's
and its customers' businesses; adverse developments in pending
litigation or regulatory matters; the impact of existing, new or
changed regulatory initiatives; the impact of one entity holding a
majority of the voting power of the Company; and the impact of
changing global political and economic conditions. Further
information concerning factors that may affect the Company's
business and performance are set forth in the Company's filings
with the Securities and Exchange Commission. The Company assumes no
obligation to update any of the information contained or referenced
in this press release. DATASOURCE: Corrpro Companies, Inc. CONTACT:
Joseph P. Lahey, President and CEO of Corrpro Companies, Inc.,
+1-330-723-5082 Web site: http://www.corrpro.com/
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