Qualstar Corporation Announces Plan to Delist from Nasdaq and Deregister Its Common Stock
April 09 2020 - 3:30PM
Business Wire
Qualstar Corporation (NASDAQ: QBAK), a leading manufacturer of
data storage solutions and high-efficiency power supplies, today
announced that it will voluntarily delist its common stock from The
Nasdaq Stock Market and, based upon ownership of its shares by
fewer than 300 holders of record, deregister its common stock under
the Securities Exchange Act of 1934 and suspend its public
reporting obligations.
Steven N. Bronson, Qualstar’s CEO, stated, “To better position
Qualstar to accelerate long-term profitable growth, we undertook a
thorough and thoughtful review of our cost structure, including
costs associated with being a Nasdaq listed and SEC reporting
company. Our Board of Directors concluded that the benefits to the
Company and its stockholders of continued Nasdaq listing and SEC
reporting did not justify the costs of maintaining that listing and
continuing to publicly report. We currently have a strong balance
sheet with no debt, and do not need to raise equity capital to
pursue our business initiatives. The resulting reduction in
operating expenses will allow us to invest greater amounts towards
product development and sales, which is a superior use of our
resources. The cessation of public reporting will also enable us to
better direct our management resources on the commercialization of
our products. For these reasons, our Board voted unanimously to
voluntarily delist from Nasdaq and deregister under the Exchange
Act.”
The Company intends to file a Form 25 with the Securities and
Exchange Commission on or about April 20, 2020, and the Nasdaq
delisting is expected to become effective on or about April 30,
2020, at which time trading on Nasdaq will cease. The common stock
may thereafter be eligible for quotation on the Pink tier of OTC
Markets Group if market makers commit to making a market in the
Company’s shares. The Company can provide no assurance that trading
in its common stock will continue on the OTC Markets Group or
otherwise.
After the Nasdaq delisting becomes effective, the Company will
file a Form 15 with the Securities and Exchange Commission on or
about May 6, 2020, at which time the Company anticipates that its
obligation to file periodic reports under the Exchange Act,
including annual, quarterly and current reports on Form 10-K, Form
10-Q and Form 8-K, respectively, will be suspended, and that all
requirements associated with being an Exchange Act-registered
company, including the requirement to file current and periodic
reports, will terminate permanently 90 days thereafter.
About Qualstar Corporation
Qualstar, founded in 1984, is a diversified electronics
manufacturer specializing in data storage and power supplies.
Qualstar is a leading provider of high efficiency and high-density
power supplies marketed under the N2Power™ brand, and of data
storage systems marketed under the Qualstar™ brand. Our N2Power
power supply products provide compact and efficient power
conversion for a wide variety of industries and applications
including, but not limited to, telecom, networking, broadcast,
industrial, lighting, gaming and test equipment. Our Qualstar data
storage products are used to provide highly scalable and reliable
solutions to store and retrieve very large quantities of electronic
data. Qualstar’s products are known throughout the world for high
quality and Simply Reliable™ designs that provide years of
trouble-free service. More information is available at
www.qualstar.com or www.n2power.com or by phone at
805-583-7744.
Forward Looking Statements
This release contains forward-looking statements made in
reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements in this
release include statements as to the timing, process and
consequences of a Nasdaq delisting and Exchange Act deregistration,
and are generally identified by phrases such as “thinks,”
“anticipates,” “believes,” “estimates,” “expects,” “intends,”
“plans,” and similar words. Forward-looking statements are not
guarantees of future performance and are inherently subject to
uncertainties and other factors which could cause actual results to
differ materially from the forward-looking statement. These
statements are based upon, among other things, assumptions made by,
and information currently available to, management, including
management’s own knowledge and assessment of the Nasdaq and SEC
obligations. Other factors and uncertainties that could affect the
Company’s forward-looking statements are more fully described in
the Company’s filings with the Securities and Exchange Commission,
including the Company’s most recently filed Quarterly Report on
Form 10-Q and Annual Report on Form 10-K, which should be read in
conjunction herewith for a further discussion of important factors
that could cause actual results to differ materially from those in
the forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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Steven N. Bronson Chief Executive Officer Qualstar Corporation
805-617-4419 IR@Qualstar.com
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