Gateway Industries, Inc. Announces Intention to De-Register Its Common Stock With the Securities and Exchange Commission
January 08 2004 - 10:18AM
PR Newswire (US)
Gateway Industries, Inc. Announces Intention to De-Register Its
Common Stock With the Securities and Exchange Commission NEW YORK,
Jan. 8 /PRNewswire-FirstCall/ -- Gateway Industries, Inc. (BULLETIN
BOARD: GWAY.OB) today announced that it intends to file a Form 15
on January 12, 2004 with the Securities and Exchange Commission to
de-register its common stock and suspend its reporting obligations
under the Securities Exchange Act of 1934. The Company expects the
de-registration to become effective within ninety (90) days of the
filing with the SEC. As a result of the filing of the Form 15, the
Company's obligation to file with the SEC certain reports and
forms, including Forms 10-KSB, 10-QSB and 8-K, will immediately
cease. The Company presently intends to continue to provide its
stockholders with periodic financial and other information on its
web site, http://www.gatewayindustries.com/. The Company's shares
will no longer be listed on the OTC Bulletin Board. The Company
anticipates that its shares will be traded on the Pink Sheets, but
can make no assurances that any broker will make a market in the
Company's common stock. The "Pink Sheets" is a centralized
quotation service that collects and publishes market maker quotes
in real time, primarily through its web site,
http://www.pinksheets.com/. The Company's Board of Directors
determined, after careful consideration, that de-registering is in
the overall best interests of the Company's stockholders. Several
factors were considered by the Board of Directors in making this
decision, including the following: -- The elimination of
disproportionately large costs associated with the preparation and
filing of the Company's periodic reports and other filings with the
SEC; -- The elimination of substantial increases in legal, audit
and other costs associated with being a public company in light of
new regulations promulgated as a result of the Sarbanes-Oxley Act
of 2002 and the SEC rules thereunder; -- The ability to improve
communications with stockholders; -- The nature and extent of
current trading in the Company's common stock, which is limited; --
The concentration of stock ownership in relatively few holders of
the Company's common stock; and -- The lack of analysts' coverage
and minimal liquidity for the Company's common stock. Warren G.
Lichtenstein, Chairman and Chief Executive Officer of the Company,
commented that "After careful consideration by the Board of
Directors and our advisors, we believe we can deliver significantly
more value to the stockholders as a non-reporting company.
Particularly in view of the new rules promulgated under the
Sarbanes-Oxley Act of 2002, the administrative costs and expenses
associated with continuing as a public company is difficult to
justify from a financial and strategic standpoint for a company of
this size and market capitalization. As a non-reporting company, we
will significantly reduce our legal and audit fees and senior
management can dedicate more time to the company's business and
operations. We are confident these advantages, coupled with our
improved ability to communicate with stockholders and our intention
to update stockholders with financial information on the company's
web site should optimize long-term stockholder value."
Additionally, effective January 30, 2004, Maritza Ramirez will
resign from her position as Chief Financial Officer of the Company
to pursue other interests. Statements included in this press
release that are not historical in nature are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 (the "1995 Act"). The words "believe," "expect,"
"anticipate," "estimate," "guidance," "target" and similar
expressions identify forward-looking statements. The Company
cautions readers that forward-looking statements are subject to
certain risks and uncertainties, which could cause actual results
to differ materially from those projected in the forward-looking
statements. Certain risks and uncertainties are identified from
time to time in the Company's reports filed with the SEC. The
Company claims the protection of the safe harbor for
forward-looking statements contained in the 1995 Act. DATASOURCE:
Gateway Industries, Inc. CONTACT: Warren G. Lichtenstein of Gateway
Industries, Inc., +1-212-758-3232 Web site:
http://www.gatewayindustries.com/
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