Renegy Holdings Delisting From NASDAQ
In a statement, company officials said the decision to delist and deregister is a cost savings step that will reduce expenses associated with its NASDAQ listing and compliance with SEC reporting requirements, which include legal, accounting and other administrative fees. The company's common stock is thinly traded and the company does not believe the benefits of having its common stock listed and registered outweigh the annual costs. Management believes that the expense reductions inherent in delisting and deregistering its shares will benefit the company and its shareholders, and ultimately will serve to maximize the value of the company.
The company expects that the last day of trading of its common stock on The NASDAQ Capital Market will be on or about March 27, 2009.
The company also plans to effect a 1-for-2,000 reverse stock split of Renegy's common stock, the cashout of fractional shares at an amount equal to $0.74 per whole share of common stock prior to giving effect to the reverse stock split, and a 2,000-for-1 forward stock split immediately following the reverse stock split and cashout of fractional shares. The transaction is being undertaken by Renegy for the purpose of reducing the number of stockholders to fewer than 300 so that it can deregister its common stock pursuant to applicable Exchange Act rules and cease filing reports with the SEC.
Renegy, based in Tempe, Arizona, is a renewable energy company engaged in biomass power generation utilizing wood waste as a primary fuel source.
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