Knox Nursery to Deregister
Knox Nursery, Inc., Winter Park, Fla., recently announced that it will file a Form 15 with the Securities and Exchange Commission (SEC) on May 12, 2005 to deregister its common stock and suspend its reporting obligations under the Securities Exchange Act of 1934. The nursery expects the reregistration to become effective within 90 days of filing with the SEC.
As a result of filing of the Form 15, the nursery's obligation to file with the SEC certain reports and forms, including its quarterly and annual reports, will immediately cease. In addition, the common stock of Knox will no longer be quoted on the OTC Electronic Bulletin Board.
The company considered several factors in making this deregistration decision, including the following:
- The costs, both direct and indirect, associated with the preparation and filing of the company's periodic reports with the SEC.
- The substantial increase in costs associated with being an SEC registered company in light of new regulations promulgated as a result of the Sarbanes-Oxley Act of 2002.
- The fact that the company's stock is very thinly traded.
Knox, after careful consideration, decided to take this action because management believes that the advantages of continuing to have the company's common stock registered with the SEC are far outweighed by the disadvantages. In addition to the significant time and cost savings resulting from deregistration, this action will also allow the company's management to focus its attention and resources on the company's business and operations.