LI firm seeks to cut costs by ending stock registration
January 24, 2019
Vicon Industries Inc. has filed to terminate the registration of its common stock, exempting the Hauppauge company from reporting requirements of the Securities and Exchange Commission.
Alon Kapen, a securities lawyer with Farrell Fritz in Uniondale, said a deregistered stock cannot be listed on a major stock exchange, but it could continue to be traded on over-the-counter markets.
“For them and their shareholders, the consequences won’t be so severe,” he said. “They’ll still be publicly traded. There will just be less information about them.”
Kapen said the costs of SEC reporting requirements can put a company at a “competitive disadvantage.”
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