RADNOR, Pa. - Safeguard Scientifics, Inc. (NASDAQ:SFE), a company historically known for its investments in technology-driven businesses, has announced its intention to voluntarily delist its common stock from the Nasdaq Stock Market. The company is set to file Form 25 with the Securities and Exchange Commission (SEC) on February 2, 2024, as a step in its plan to deregister its common stock under the Securities Exchange Act of 1934.
The delisting is expected to take effect ten days post the filing, after which Safeguard Scientifics plans to file Form 15 with the SEC. This action will certify that the company has fewer than 300 shareholders of record, effectively terminating the registration of its common stock under Section 12(g) of the Exchange Act.
Subsequent to its removal from Nasdaq, Safeguard anticipates that its common stock will be quoted on a market operated by OTC Markets Group Inc., allowing for continued trading. However, the company has indicated that there is no certainty that brokers will maintain a market in its common stock or that trading will persist on an OTC market or otherwise.
In connection with this transition, the company has completed a reverse stock split followed by a forward stock split, both at a 1-for-100 and 100-for-1 ratio respectively, effective January 12, 2024. These stock splits were within the range approved by shareholders on December 15, 2023, and are part of the broader plan to deregister and delist the company's common stock.
Safeguard Scientifics has a history of over six decades in supporting the growth of innovative technology businesses and is currently working on a strategy aimed at maximizing value from its ownership interests to enhance shareholder value.
The information regarding Safeguard Scientifics' plans for delisting and the subsequent trading of its common stock is based on a press release statement.
InvestingPro Insights
As Safeguard Scientifics, Inc. (NASDAQ:SFE) prepares for its delisting from the Nasdaq Stock Market, a glance at the company’s financial health through InvestingPro's real-time data reveals a challenging landscape. With a market capitalization of just 11.3 million USD, the company's valuation reflects a negative P/E ratio of -1.07, underscoring the absence of profitability in the last twelve months as of Q3 2023. The operating income during this period also indicates a loss of 4.72 million USD.
InvestingPro Tips for Safeguard Scientifics highlight several concerns for potential investors. The company's weak gross profit margins and a valuation that implies a poor free cash flow yield point to fundamental financial weaknesses. Additionally, despite liquid assets exceeding short-term obligations, which may offer some solace regarding immediate liquidity, the absence of profitability over the last twelve months and a significant decline in stock price over the past year (-67.33%) and six months (-30.28%) paint a sobering picture of the company's recent performance.
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