NEW
YORK, Aug. 22, 2022 /PRNewswire/ -- August 22, 2022 — ALJ Regional Holdings, Inc.
(NASDAQ: ALJJ) ("ALJ" or the "Company")
announced today that it has submitted a formal notice to Nasdaq
Stock Market LLC ("NASDAQ") of its decision to voluntarily
delist its common stock from the NASDAQ Global Market and its
intent to file a Form 25 with the U.S. Securities and Exchange
Commission (the "SEC") on or about September 1, 2022. As a result, ALJ expects that
the last day of trading of its common stock on the NASDAQ Global
Market will be on or about September 11,
2022. After the Form 25 is effective, ALJ also intends to
pursue such other measures necessary to terminate or suspend the
registration of its common stock under the Securities Exchange Act
of 1934, as amended (the "Exchange Act"). The Company is
eligible to voluntarily deregister because it has fewer than 300
stockholders of record. ALJ anticipates that its common stock will
be quoted on the Pink Sheets platform, which is operated by OTC
Markets Group Inc. (the "Pink Sheets"), and ALJ
currently intends to continue to provide information to its
stockholders and to take such actions within its control to enable
its common stock to be quoted in the Pink Sheets so that a trading
market may continue to exist for its common stock. There is no
guarantee, however, that a broker will continue to make a market in
the common stock and that trading of the common stock will continue
on the Pink Sheets or otherwise or that the Company will continue
to provide information sufficient to enable brokers to provide
quotes for its common stock.
The Company expects the deregistration of its common stock to
become effective 90 days after the date of filing the Form 25 with
the SEC. However, its reporting obligations to file certain reports
with the SEC, including Forms 10-Q, 10-K and 8-K, will be
immediately suspended upon filing the Form 25. Other filing
requirements will terminate upon effectiveness of the
deregistration.
The Board of Directors of the Company (the "Board")
believes that the decision to delist the common stock from NASDAQ
and deregister the common stock under Section 12(b) of the Exchange
Act is in the best interest of the Company and its stockholders as
it has determined that the burdens associated with operating as a
registered public company outweigh any advantages to the Company
and its stockholders at this time. The Board's decision was based
on careful review of numerous factors, including the significant
cost savings of no longer preparing and filing periodic reports
with the SEC and reduction of significant legal, audit and other
costs associated with being a reporting company, including the
substantial costs and demands on management's time relating to the
requirements of the Sarbanes-Oxley Act of 2002, SEC rules and
NASDAQ listing standards, as well as the fact that the Company
currently intends to provide liquidity to its stockholders
following the delisting by taking actions within its control to
have the common stock traded on the Pink Sheets and making periodic
repurchases of the Common Stock from our stockholders. Once
delisted and deregistered, the Board believes that the Company may
redirect its financial and management resources that have been used
to operate as a registered public company to pursue a wider range
of business opportunities and strategic transactions.
About ALJ
ALJ Regional Holdings, Inc. is the parent company of Faneuil,
Inc., a leading provider of call center services, back office
operations, staffing services, and toll collection services to
commercial and governmental clients across the United States.
Forward-Looking Statements
This press release contains forward-looking statements based on
current expectations that involve a number of risks and
uncertainties. All forecasts, projections, future plans or other
statements, other than statements of historical fact, are
forward-looking statements and include words or phrases such as
"believes," "will," "expects," "anticipates," "intends,"
"estimates," "plan," "believe," "would" and words and phrases of
similar import. The forward looking statements in this press
release are also forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Exchange Act, and involve substantial risks and
uncertainties. We can give no assurance that such expectations will
prove to be correct. Actual results could differ materially as a
result of a variety of risks and uncertainties, many of which are
outside of the control of the Company.
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SOURCE ALJ Regional Holdings, Inc