March 23, 2005
Conrad to delist from Nasdaq
Conrad Industries, Inc. (Nasdaq: CNRD) says it intends to voluntarily delist its common stock from Nasdaq on or about March 30, 2005. Simultaneously, the company will file a Form 15 with the SEC to voluntarily deregister its common stock under the Securities Exchange Act and to suspend its obligation to file reports under Section 15(d) of the Exchange Act.
Conrad Industries, Inc. is eligible to deregister by filing a Form 15 because it has fewer than 300 holders of record of its common stock. On the filing of the Form 15, Conrad's obligation to file certain reports with the SEC, including Forms 10-K, 10-Q, and 8-K, will immediately cease.
Conrad expects that the deregistration of its common stock will become effective 90 days after the date of filing of the Form 15 with the SEC.
The company's shares may be quoted on the Pink Sheets after it delists from Nasdaq, but Conrad says it can give no assurances that any broker will continue to make a market in the company's common stock. The Pink Sheets is a provider of pricing and financial information for the over-the-counter (OTC) securities markets.
Johnny Conrad, Conrad's President and CEO said the Conrad board had unanimously recommended the delisting and deregistration.
"The costs and administrative burdens associated with being a public company have significantly increased, particularly in light of new SEC, Sarbanes-Oxley and Nasdaq requirements," said Conrad. "Our Board has determined that the rising costs of compliance, as well as the substantial demands on management time and resources, outweigh the benefits the company receives from maintaining its registered and listed status. We believe that deregistering will result in significantly reducing expenses, avoiding even higher future expenses and will enable our management to focus more of its time and resources on operating the company and enhancing shareholder value."
The deregistration and delisting of the company's stock was unanimously recommended to the Board by a special committee of independent directors.
Conrad Industries, Inc., established in 1948 and headquartered in Morgan City, designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore supply vessels and other steel and aluminum products for both the commercial and government markets. The company provides both repair and new construction services at its four shipyards located in southern Louisiana and Texas.