MMRK deregistering....
Remember how PCHW reacted....
(BSNS WIRE) Mile Marker International, Inc. Announces Securities De-Registrat
on
Mile Marker International, Inc. Announces Securities De-Registration
Business Editors
POMPANO BEACH, Fla.--(BUSINESS WIRE)----
Mile Marker International, Inc. (OTCBB:MMRK) ("the Company"), a
specialty vehicle parts distributor and manufacturer, today announced
that it has filed a Form 15 with the U.S. Securities and Exchange
Commission to voluntarily terminate the registration of its common
stock under Section 12(g) of the Securities Exchange Act of 1934 and
to suspend its obligation to file reports under Sections 13(a) and
15(d) of the Exchange Act.
The Company currently has only 154 shareholders of record, and is
eligible under SEC rules to terminate the registration of its common
stock and suspend its reporting obligations because it has fewer than
300 shareholders of record. Current SEC rules do not count individual
beneficial shareholders whose shares are in street name with brokers
as shareholders of record. The Company's decision to become
non-reporting was made by the Company's Board of Directors after
careful consideration of the advantages and disadvantages of
continuing to be a reporting company following the decrease in the
number of its shareholders of record.
The Company's Section 12(g) de-registration of its common stock
will become effective 90 days after filing Form 15 with the SEC. The
Company's obligation to file reports under the Securities Exchange
Act, including Forms 10-KSB, 10-QSB and 8-K will immediately be
suspended, and future reports will not be available through the SEC's
EDGAR reporting system. Following de-registration, the Company intends
to continue to hold annual shareholder meetings, provide annual
reports to its shareholders and to voluntarily make periodic financial
information and other periodic communications available to its
shareholders.
As a result of de-registering with the SEC, the Company expects
that its common stock will no longer be eligible for listing on the
OTC Bulletin Board. However, the Company anticipates that its shares
will continue to be quoted on the Pink Sheets Electronic Quotation
Service to the extent that broker-dealers commit to continue to make a
market in the Company's stock. To facilitate such listing, the Company
intends to post its periodic financial statements and other key
company information on the Company's portion of the Pink Sheets
Electronic Quotation Service under the symbol MMRK.PK. However, the
Company can provide no assurance that any broker-dealer will make a
market in the Company's stock, which is a requirement for Pink Sheet
trading.
Richard Aho, President and CEO of Mile Marker International, Inc.,
said: "While our Company has been a reporting company since 1993,
increasingly the costs of being a reporting public company have
outweighed the benefits, particularly the increasingly onerous
requirements of complex and changing SEC regulations and the Section
404 requirements of Sarbanes-Oxley legislation. Even with the changes
recently announced for delayed compliance with Section 404 by smaller
companies until December 31, 2007, our small company faced the
prospects of more than doubling our auditing expenses this year if we
continued as a reporting company. Last year, our audit-related costs
were approximately $120,000 compared to our net income of $108,173.
Additionally, we have been at a serious competitive disadvantage
relative to our non-public competitors, which have had access to
details of our Company's markets, operations and finances while we
have not had access to similar information for our competitors. We
also believe that this change will better facilitate the exploration
of our various strategic options for enhancing our shareholder value
without the burdens of a reporting public company. As a non-reporting
company, we expect to have more flexibility in continuing to expand
our core commercial business and pursuing various strategic
opportunities."
The Company's Board of Directors believes that while the liquidity
for the Company's stock may be reduced and the price of its stock may
decrease in the near term, the accounting, legal and administrative
savings associated with de-registration, both in terms of cost and in
time, are in the best interests of the shareholders. For the Company's
size and the current thinly-traded nature of its stock, the Board
believes that the financial and strategic burden is disproportionate
to the benefits of maintaining its registered status. The Company
expects that management will be able to better focus its attention and
resources on improving its operations, pursuing its strategic
objectives and enhancing its shareholder value. The Company intends to
continue its practice of purchasing its own common shares pursuant to
its previously announced repurchase program since its management
believes such purchases to be in the best interests of its remaining
shareholders.
Mile Marker International, Inc., through its wholly-owned
subsidiaries, Mile Marker, Inc., Mile Marker West, Inc., and Mile
Marker Automotive Electronics (ShenZhen), Ltd., is a manufacturer and
distributor of specialized vehicle parts primarily for the four-wheel
drive utility/recreational and military vehicle markets. The Company's
unique patented hydraulic winch has received overwhelming acceptance
by the U.S. military for installation on new and retrofitted Humvees.
Forward Looking Statements
Included in this release are certain "forward-looking" statements,
involving risks and uncertainties, which are covered by the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995, including statements regarding the Company's financial
performance. Such statements are based on management's current
expectations and are subject to certain factors, risks and
uncertainties that may cause actual results, events and performance to
differ materially from those referred to or implied by such
statements. In addition, actual future results may differ materially
from those anticipated, depending on a variety of factors, sales and
earnings growth, ability to attract and retain key personnel and
general economic conditions, including uncertainties relating to
global political conditions, such as terrorism. Information with
respect to important risk factors that should be considered is
contained in the Company's Annual Report on Form 10-KSB and its Form
10-QSB as filed with the U.S. Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
The Company does not intend to update any of the forward-looking
statements after the date of this release to conform these statements
to actual results or to changes in its expectations, except as may be
required by law.
KEYWORD: NORTH AMERICA FLORIDA UNITED STATES
INDUSTRY KEYWORD: MANUFACTURING AUTOMOTIVE MANUFACTURING AUTOMOTIVE CONSUMER &AM
; GENERAL INTEREST OFF-ROAD TRUCKS & SUVS
SOURCE: Mile Marker International, Inc.
CONTACT INFORMATION:
Mile Marker International, Inc., Pompano Beach
Al Hirsch, Chief Financial Officer, 954-782-0604
al@milemarker.com
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