The legitimate process for a company to go private
To successfully "go dark," a company must complete two actions: delisting and deregistration.
1. Delisting from an exchange:
* First, the company voluntarily removes its shares from a major stock exchange by filing a Form 25 with the SEC.
The company must give public notice via a press release and its website at least 10 days before filing the Form 25.
2. Deregistering with the SEC:
* To cease mandatory reporting requirements, the company must also deregister with the SEC.
To do this, it must reduce its number of shareholders below a specific threshold— generally fewer than 300 "holders of record".
* This is typically achieved through a "going private" transaction, such as a tender offer, where a controlling shareholder or a private equity firm offers to buy back all outstanding shares from public investors.
* Alternatively, a company can execute a reverse stock split to force out smaller shareholders, cashing them out in the process.
* Once the shareholder count is low enough, the company files a Form 15 with the SEC to suspend and later terminate its reporting obligations.
President Donald Trump has revived an idea he first floated during his earlier administration: doing away with quarterly reporting requirements for U.S. public companies.
During the course of the year, we earned $3,054,623 in revenue
Dear Shareholders,
I would like to begin by thanking you all for joining us on the incredible journey we've embarked on.
We would never be where we are today without your support and confidence, and I trust that this letter will demonstrate that your trust in our company has been well placed.