Hines Plans to Deregister Common Stock
Hines Horticulture Inc. recently announced that it anticipates filing a Form 15 on or around Feb. 7, 2008, with the Securities and Exchange Commission to deregister its common stock under the Securities Exchange Act of 1934. The company is able to deregister because it has fewer than 300 shareholders of record, according to an article on PR-USA.net.
The company is seeking consent from a majority of the holders of Hines Nurseries’ 10.25 percent Senior Notes due 2011 to amend the current indenture and permit the company to cease filing reports with the Securities and Exchange Commission. The beneficial owner of a majority in aggregate principal amount of the Notes has agreed to give consent.
The company’s board of directors unanimously decided to take this action because it believes that the burdens associated with operating as a registered public company currently outweigh any advantages to Hines and its stockholders. The board considered the factors of costs incurred by Hines each year in connection with preparing and filing periodic reports, and the benefits of permitting senior management to spend less time on report preparation and regulatory compliance, as well as the historically low trading volume of the company’s common stock and the concentration of stock ownership in relatively few holders.
For more information, visit www.hineshorticulture.com.