MINNEAPOLIS, Dec. 5 /PRNewswire-FirstCall/ -- HEI, Inc. (Nasdaq: HEII) (http://www.heii.com) announced today that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock under the Securities Exchange Act of 1934. HEI expects that the deregistration will be effective after 90 days, if the SEC does not deny the Company's application to deregister. As a result of this filing, HEI's obligation to file certain reports and forms with the SEC, including Forms 10-K, 10-Q and 8-K, will be immediately suspended. The Company is eligible to deregister because it has less than 300 shareholders of record.
The Company believes that while the liquidity for its common stock may be reduced, the administrative and other economies and savings associated with de-registration are in the best interest of its shareholders. In addition, the Company believes that it would not be able to maintain NASDAQ listing for a number of reasons.
In commenting on the decision to deregister, Mark Thomas, HEI's Chief Executive Officer, stated, "After carefully considering the advantages and disadvantages of continued registration, HEI believes that deregistering is in the best interest of increasing long term stockholder value. This action should result in accounting, legal and administrative expense reductions and allow HEI management to focus its attention, efforts and resources on HEI's operations and revenue growth."
As a result of de-registration, the Company's securities will no longer be eligible for quotation on NASDAQ; however, the Company's securities may be eligible for quotation on the Pink Sheets (http://www.pinksheets.com) by broker-dealers. There can be no assurance, however, that any broker-dealer will make a market in the Company's common stock which would be required for Pink Sheet trading.
HEI, Inc. designs, develops and manufactures microelectronics,
subsystems, systems, connectivity and software solutions for OEMs engaged
for the medical equipment and medical device, hearing, communications, and
industrial markets. HEI provides its customers with a single point of
contact that can take an idea from inception to a fully functional, cost
effective and manufacturability product utilizing innovative design
solutions and by the application of state-of-the-art materials, processes
and manufacturing capabilities.
Headquarters & Microelectronics Division
PO Box 5000, 1495 Steiger Lake Lane, Victoria, MN 55386
-Advanced Medical Division
4801 North 63rd Street, Boulder, CO 80301
-High Density Interconnect Division
610 South Rockford Drive, Tempe, AZ 85281
FORWARD LOOKING INFORMATION
Information in this news release, which is not historical, includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as "may," "will," "expect," "anticipate," "believe," "intend," "estimate," "continue," and similar words. Statements contained in this press release, including the implementation of business strategies, growth of specific markets, improved results and the estimated HEI revenue, cash flow and profits, expected cost savings from deregistering, are forward looking statements. All of such forward-looking statements involve risks and uncertainties including, without limitation, continuing adverse business and market conditions, the ability of HEI to secure and satisfy customers, the availability and cost of materials from HEI's suppliers, our ability to satisfy financial or other obligations or covenants set forth in our financing agreements, adverse competitive developments, change in or cancellation of customer requirements, collection of receivables and outstanding debt, HEI's ability to control fixed and variable operating expenses, and other risks detailed from time to time in HEI's SEC filings. We undertake no obligation to update these statements to reflect ensuing events or circumstances, or subsequent actual results. See the risk factor section in annual report on Form 10K for year ended September 1, 2007.
|SOURCE HEI, Inc.|
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