Rexhall Industries, Inc. announced late yesterday (Nov. 22) that it filed with the Securities and Exchange Commission to deregister its common stock and suspend its reporting obligations as a public company.
According to a press release, the Lancaster, Calif., Class A motorhome builder expects the deregistration to become effective 90 days after the filing with the SEC.
Immediately following Rexhall’s announcement, the NASDAQ Stock Market said it had halted trading on Rexhall Industries just prior to yesterday’s close. Rexhall’s sale price was listed at 71 cents.
“After careful consideration, our board of directors decided to take this action because we believe that the disadvantages of continuing as a public company far outweigh any of the advantages,” said President and CEO William Rex.
Rexhall listed several factors leading to the decision, including the costs associated with preparation and filing of periodic financial reports and the pending delisting of Rexhall’s common stock from NASDAQ as it had dropped below the minimum share price of $1.
The firm stated, “In addition to the significant time and cost savings resulting from deregistration, this action is intended to allow the Company’s management to focus its attention and resources on Rexhall’s core business of building Class A motorhomes.”