January 19, 2004
Michael Anthony to Delist From Stock Exchange
Michael Anthony Jewelers Inc. plans to delist its common stock from the American Stock Exchange, citing the costs of meeting the regulatory requirements of a public company, particularly since the passage of the Sarbanes-Oxley Act in 2002. The jewelry and watch maker also noted it has fewer than 300 shareholders, for whom the company's stock offers minimal liquidity and lacks analyst coverage.
In a press release, the company says it expects its shares will trade through the "Pink Sheets," an electronic quotation service for over-the-counter stocks, although the company couldn't make any assurance that a broker will make a market in the stock.
Michael Anthony Jewelers also says it is seeking to deregister its shares and suspend its reporting obligations under the Securities Exchange Act of 1934. Stocks found only on the Pink Sheets have no reporting requirements.
Michael Anthony reported losses for at least the last five quarters, says Dow Jones Newswires. In the fall of last year, the company's president, Claudia Hollingsworth, resigned after 18 months to pursue other interests. Its financial chief, Allan Corn, retired at the end of 2003, but retained his seat on the board.