FRONTEO Announces Plan to Delist American Depositary Receipts from NASDAQ Global Market & Deregister with U.S. Securities & E...
January 31 2020 - 4:16AM
Business Wire
FRONTEO, Inc. (NASDAQ:FTEO) (TOKYO:2158), a leading provider of
artificial intelligence based big data analysis services, announced
that its board of directors resolved, at a meeting held on January
23, 2020, to delist its American Depositary Receipts (“ADRs”) from
the NASDAQ Global Market (“NASDAQ”) and submit an application for
deregistration with the U.S. Securities and Exchange Commission
(“SEC”). The Company has also announced that it has notified NASDAQ
of its intention to delist its ADRs voluntarily. The Company will
continue to be listed on Tokyo Stock Exchange.
The Company listed its ADRs on NASDAQ in May 2013 to raise its
profile and enhance its brand value in the United States, where the
market for the Company’s longstanding business, analysis and
disclosure of electronic evidence services (eDiscovery) originated.
Since then, the Company has taken steps to promote active
information disclosure to its shareholders and investors, including
the fulfilment of disclosure obligations under the Securities
Exchange Act, the preparation of consolidated financial statements
in accordance with accounting principles generally accepted in the
United States, and the establishment of internal control systems as
required by the Sarbanes-Oxley Act. Meanwhile, the external
environment has changed due to the internationalization of the
Japanese securities market, as demonstrated by the increase in
trading by investors overseas.
Since listing on NASDAQ, the Company has widened its operations
across the United States and successfully expanded its business. In
addition, through building a relationship with major law firms in
the United States, the Company has been able to lay a solid
foundation for today’s review process using AI technology. At this
point, the Company believes that it has achieved the objectives it
had in listing the ADRs.
Given the substantial cost of the financial closing process and
other activities to maintain the listing and considering all facts
and circumstances, the Company has made the decision to divert its
financial and human resources towards its transition to an AI-based
business model. Consequently, the Company has also decided to apply
for voluntary delisting from NASDAQ and deregistration from the
SEC.
The Company is scheduled to file a Form 25 with the SEC on
February 3, 2020, and the NASDAQ delisting is expected to become
effective on February 13, 2020. After the NASDAQ delisting becomes
effective on February 13, 2020, the Company will file a Form 15-F
with the SEC to terminate the Company’s ongoing disclosure
obligations under the Securities Exchange Act. Termination of the
deposit agreement with the depositary bank (i.e., termination of
the ADR program) is expected to become effective on March 2, 2020,
and deregistration from the SEC is expected to become effective on
May 3, 2020. Finally, Termination of the Company’s ongoing
disclosure obligations under the Securities Exchange Act is
expected to become effective on May 13, 2020. (All times are in
Eastern Standard Time.)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200131005145/en/
Sumiko Kawamoto Corporate Communications FRONTEO, Inc.
+81-3-5463-6380 pr_contact@fronteo.com
FRONTEO (NASDAQ:FTEO)
Historical Stock Chart
From Jun 2024 to Jul 2024
FRONTEO (NASDAQ:FTEO)
Historical Stock Chart
From Jul 2023 to Jul 2024