Security Associates Int’l Inc. (SAI) announced Jan. 17 it has filed a Form 15 with the Securities and Exchange Commission (SEC) to deregister the company’s common stock and warrants under the Securities Exchange Act of 1934.
SAI says it expects the deregistration to become effective within 90 days of the filing. As a result of this action, the company’s obligation to file periodic reports, including its quarterly and annual reports, has been terminated immediately.
In a statement, SAI says its board of directors considered several factors in making this decision. Some include the company’s reduced number of common stockholders of record, the fact that the company’s stock is very thinly traded, and the nature and extent of the trading of SAI’s common stock.
The company had anticipated that its legal and accounting costs would increase substantially as a result of recently enacted legislation affecting all public companies. In addition to the significant time and cost savings resulting from deregistration, this action will allow company management to focus its attention and resources on implementing the company’s business plan and exploring financing and strategic alternatives for the business, according to the statement.
SAI’s stock is quoted on the “pink sheets” under the symbol SECA. Market makers may elect to continue to quote the company’s common stock using the pink sheets after deregistration of the stock becomes effective.
SAI provides security alarm monitoring services to residences and businesses through a nationwide network of independent security alarm installing and servicing dealers.
