NUREMBERG, Germany - VIA optronics AG (NYSE:VIAO), a provider of interactive display solutions, announced its plan to voluntarily delist its American Depository Shares (ADSs) from the New York Stock Exchange (NYSE) and terminate its registration with the U.S. Securities and Exchange Commission (SEC).
The decision was made by the company's Supervisory Board today, aiming to reduce costs and focus on its core business.
The delisting is expected to address the issues of low liquidity of VIA's ADSs and the financial burden of maintaining the NYSE listing and SEC registration. VIA believes that by reallocating resources, it can better execute its business strategy, manage its operations more effectively, and strengthen customer and business partner relationships.
VIA has notified the NYSE of its intention and anticipates filing a Form 25 with the SEC on or around April 19, 2024. If not withdrawn, the delisting will take effect 10 days post-filing, with the last trading day on the NYSE projected to be approximately April 29, 2024.
Following the NYSE delisting, VIA plans to submit its delayed annual report for the fiscal year ending December 31, 2022, and then proceed with filing a Form 15 to deregister its ADSs and suspend its SEC reporting obligations. The company has not provided a definitive timeline for the completion of these actions.
Previously, VIA was notified by the NYSE of non-compliance with its continued listing standards. The company's display solutions cater to high-end markets that require superior functionality or durability in challenging conditions, such as bright ambient light and extreme temperatures.
This announcement is based on a press release statement and contains forward-looking statements about VIA's expectations for the delisting and deregistration process. These statements are subject to risks and uncertainties, and actual events may differ materially from those forecasted.
InvestingPro Insights
In the wake of VIA optronics AG's (NYSE:VIAO) announcement to delist from the NYSE, a look at the company's financial metrics and market performance reveals several challenges that may have influenced this decision.
VIAO's market capitalization stands at a modest 21.52 million USD, reflecting the scale of the business in the context of the global market. Furthermore, the stock's P/E ratio is currently negative at -1.64, indicating that investors have concerns about the company's profitability.
InvestingPro Data shows that VIAO has experienced a 3.49% increase in price total return over the past week, yet this short-term gain contrasts starkly with a significant -68.61% decline over the past year.
This suggests a downward trend in investor confidence, which may be partly due to the company's weak gross profit margins, as highlighted by one of the InvestingPro Tips. Moreover, the company's valuation implies a poor free cash flow yield, which is a critical factor for investors seeking long-term growth and stability. Another InvestingPro Tip points out that VIAO does not pay a dividend, which could deter income-focused investors.
For those looking to delve deeper into VIAO's financials and market performance, InvestingPro offers additional insights and tips. Currently, there are more tips available for VIAO, which could prove invaluable for investors weighing the company's prospects post-delisting. Interested readers can leverage these insights by subscribing to InvestingPro, and using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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