The Board of Directors of QualMark Corporation has unanimously adopted a resolution to delist its shares from the Over the Counter Bulletin Board and to terminate the registration of its common stock under the Securities Exchange Act of 1934. The company expects to file a form with the Securities and Exchange Commission suspending its SEC reporting obligations effective May 12, 2008.
According to the resolution, the burdens on management time as well as increased costs for outside accounting and legal services caused by rules and regulations required of listed and registered companies were the factors considered by the directors, who determined that it was in the best interest of the company to voluntary delist the company’s stock. Following the delisting of the stock, the directors will make reasonable efforts to have the company’s shares quoted on the Pink Sheets.
QualMark’s directors have also approved an increase in the number of authorized shares of the company to 60 million, 50 million of which shall be reserved as common stock and 10 million to be designated as preferred stock. The increase is subjected to shareholder approval, and the directors believe that this increase was necessary in order to allow the company the option to pursue additional capital raising activities aimed at company growth.
“The action taken today by the Board will allow us to focus all of our financial and managerial resources on serving our customers, growing our business, and creating long-term shareholder value,” stated Andy Drenick, President and CEO. Mr. Drenick continued, “We intend to maintain auditable financial information that can be used if, in the future, we elect to re-register our shares, make an acquisition, or sell or merge the Company.”
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