Altisource Asset Management Corporation Announces Intention to Voluntarily Delist and Deregister Its Common Stock
Altisource Asset Management (NYSE American: AAMC) has announced its intention to voluntarily delist from the NYSE American and deregister its common stock. This decision comes after receiving a notification of non-compliance with NYSE American's continued listing standards. The company cites expected cost savings and its current inability to realize the benefits of public company status as reasons for this move.
AAMC plans to file a Form 25 with the SEC on or about September 6, 2024, with the delisting expected to take effect around September 16, 2024. Subsequently, the company intends to file a Form 15 to deregister its common stock and suspend its reporting obligations. This will result in the termination of AAMC's requirement to file various SEC reports, including 10-K, 10-Q, and 8-K forms.
Altisource Asset Management (NYSE American: AAMC) ha annunciato la sua intenzione di delistare volontariamente dalla NYSE American e deregisterare le proprie azioni comuni. Questa decisione arriva dopo aver ricevuto una notifica di non conformità agli standard di quotazione continuativa della NYSE American. L'azienda cita risparmi sui costi previsti e la current incapacité di realizzare i benefici dello status di azienda pubblica come motivazioni per questa mossa.
AAMC prevede di presentare un Modulo 25 alla SEC intorno al 6 settembre 2024, con l'atteso delisting che dovrebbe entrare in vigore attorno al 16 settembre 2024. Successivamente, l'azienda intende presentare un Modulo 15 per deregistrare le proprie azioni comuni e sospendere i suoi obblighi di segnalazione. Questo comporterà la cessazione dell'obbligo di AAMC di presentare vari rapporti alla SEC, inclusi i moduli 10-K, 10-Q e 8-K.
Altisource Asset Management (NYSE American: AAMC) ha anunciado su intención de deslistar voluntariamente de la NYSE American y deregistrar sus acciones ordinarias. Esta decisión llega tras recibir una notificación de incumplimiento con los estándares de cotización continua de la NYSE American. La empresa cita ahorros de costos esperados y su actual incapacidad para realizar los beneficios del estado de empresa pública como razones para este movimiento.
AAMC planea presentar un Formulario 25 ante la SEC alrededor del 6 de septiembre de 2024, con el deslisting previsto para entrar en vigor alrededor del 16 de septiembre de 2024. Posteriormente, la empresa tiene la intención de presentar un Formulario 15 para deregistrar sus acciones ordinarias y suspender sus obligaciones de informes. Esto resultará en la terminación del requisito de AAMC de presentar varios informes a la SEC, incluidos los formularios 10-K, 10-Q y 8-K.
Altisource Asset Management (NYSE American: AAMC)는 NYSE American에서 자발적으로 상장 폐지할 것과 보통주를 등록 해제할 것을 발표했습니다. 이 결정은 NYSE American의 지속적인 상장 기준을 준수하지 못했다는 통지를 받은 후 이루어졌습니다. 회사는 예상되는 비용 절감과 상장 회사의 혜택을 실현할 수 없는 현재의 상황을 이 결정의 이유로 제시했습니다.
AAMC는 2024년 9월 6일경에 SEC에 Form 25를 제출할 계획이며, 상장 폐지는 2024년 9월 16일경에 발효될 것으로 예상됩니다. 그 후, 회사는 보통주의 등록을 해지하고 보고 의무를 중단하기 위해 Form 15를 제출할 예정입니다. 이로 인해 AAMC는 10-K, 10-Q 및 8-K 양식을 포함한 다양한 SEC 보고서를 제출해야 할 의무가 종료됩니다.
Altisource Asset Management (NYSE American: AAMC) a annoncé son intention de se retirer volontairement de la NYSE American et de désenregistrer ses actions ordinaires. Cette décision fait suite à une notification de non-conformité aux normes de cotation continue de la NYSE American. La société cite des économies de coûts attendues et son incapacité actuelle à tirer parti du statut d'entreprise publique comme raisons de cette décision.
AAMC prévoit de déposer un Formulaire 25 auprès de la SEC aux alentours du 6 septembre 2024, avec un retrait qui devrait prendre effet autour du 16 septembre 2024. Par la suite, la société a l'intention de déposer un Formulaire 15 pour désenregistrer ses actions ordinaires et suspendre ses obligations de reporting. Cela entraînera la cessation de l'obligation d'AAMC de déposer divers rapports auprès de la SEC, y compris les formulaires 10-K, 10-Q et 8-K.
Altisource Asset Management (NYSE American: AAMC) hat seine Absicht bekannt gegeben, sich freiwillig von der NYSE American abzumelden und seine Stammaktien abzumelden. Diese Entscheidung folgt auf eine Mitteilung über die Nichteinhaltung der fortlaufenden Notierungsstandards der NYSE American. Das Unternehmen nennt erwartete Kosteneinsparungen und seine aktuelle Unfähigkeit, die Vorteile des Status eines öffentlichen Unternehmens zu realisieren als Gründe für diesen Schritt.
AAMC plant, am oder um den 6. September 2024 ein Formular 25 bei der SEC einzureichen, wobei die Abmeldung voraussichtlich um den 16. September 2024 wirksam werden soll. Anschließend beabsichtigt das Unternehmen, ein Formular 15 zur Abmeldung seiner Stammaktien einzureichen und seine Berichtspflichten auszusetzen. Dies führt zur Beendigung der Pflicht von AAMC, verschiedene SEC-Berichte einzureichen, einschließlich der Formulare 10-K, 10-Q und 8-K.
- Expected cost savings from delisting and deregistration
- Reduced time spent on SEC reporting compliance, allowing management to focus more on business operations
- Non-compliance with NYSE American's continued listing standards
- Low trading value and volume limiting liquidity and capital raising abilities
- Inability to realize traditional benefits of being a publicly traded company
- Loss of access to public markets for capital raising
- Reduced ability to use securities as transaction consideration
- Decreased interest from institutional investors and market analysts
Insights
Altisource Asset Management's decision to delist and deregister its common stock is a significant move with mixed implications. The company cites cost savings and lack of benefits from public status as primary reasons. This suggests
The company's inability to leverage public status for capital raising and liquidity points to underlying financial challenges. This move may limit future growth opportunities and reduce transparency for existing shareholders. While it allows management to focus more on core operations, it also raises questions about the company's long-term viability and strategy. Investors should carefully consider the implications of reduced liquidity and financial reporting in their investment decisions.
This delisting decision reflects broader trends in the micro-cap market segment. Low trading volume and liquidity are common challenges for smaller public companies, often outweighing the benefits of public status. The move could potentially signal a shift towards privatization or a strategic restructuring.
From a market perspective, this reduces investment options in the asset management sector, particularly for retail investors seeking exposure to alternative asset managers. The lack of institutional interest mentioned suggests that the company's business model or market position may not be competitive in the current environment. This could be indicative of wider challenges in the sector or specific issues with Altisource's strategy. Investors should monitor similar companies for potential industry-wide trends.
The voluntary delisting and deregistration process outlined by Altisource Asset Management follows standard SEC procedures. Key dates to note are the Form 25 filing around September 6 and expected delisting by September 16. The subsequent Form 15 filing will initiate the deregistration process, which typically becomes effective within 90 days.
This move has significant implications for shareholder rights. Once deregistered, the company will no longer be subject to many investor protection regulations under the Exchange Act. Shareholders will have reduced access to financial information and fewer avenues for recourse. While this decision is within the company's rights, it underscores the importance of robust corporate governance and shareholder communication during and after the transition to maintain investor confidence.
CHRISTIANSTED,
As previously disclosed, the Company received a notification letter from the NYSE American advising that the Company is not in compliance with the NYSE American continued listing standards set forth in Sections 1003(a)(ii) and (iii) of the NYSE American Company Guide given the reported stockholders’ equity as of March 31, 2024, and losses from continuing operations and/or net losses in the Company’s five most recent fiscal years ended December 31, 2023. In response, the Company submitted a plan of compliance. However, there can be no assurance that such plan of compliance will be successful or that the Company would be able to maintain its listing in the future.
Subsequent to submitting the compliance plan, the Company evaluated its option to voluntarily delist and deregister its Common Stock and determined that delisting and deregistering is the best path for the Company due to expected cost savings and the Company’s current inability to realize the traditional benefits of public company status. The low trading value, and the resulting low trading volume, limit our securities’ liquidity and affects the Company’s ability to raise capital from the public markets, effectively use its securities as transaction consideration, attract interest from institutional investors or market analysts or otherwise realize the traditional benefits of being a publicly traded company. Despite the lack of these benefits, the Company incurs all of the significant annual expenses and indirect costs associated with being a public company. The Company believes the reduction in time spent by its management and employees complying with the requirements applicable to SEC reporting companies will enable them to focus more on managing the Company’s businesses.
On August 26, 2024, the Company notified the NYSE American of its intention to voluntarily delist its Common Stock. The Company intends to file with the Securities and Exchange Commission (the “SEC”) a Form 25 on or about September 6, 2024 to effect the delisting from the NYSE American and the deregistration of the Company’s Common Stock under Section 12(b) of the Exchange Act. As a result, the Company expects that listing and trading of its Common Stock on the NYSE American will end at market close on or about September 16, 2024.
Following the effectiveness of the Form 25, and after the Company has made all necessary SEC filings and is otherwise able to do so, the Company intends to file with the SEC a Form 15 to deregister the Company’s common stock under Section 12(g) of the Exchange Act and suspend its reporting obligations under Section 15(d) of the Exchange Act.
As a result of the filing of the Form 15, the Company’s obligation to file certain Exchange Act reports and forms with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, will be suspended. Other filing requirements will terminate upon the effectiveness of the deregistration. The Company expects that the deregistration of its Common Stock will become effective no later than 90 days after the filing of the Form 15 with the SEC.
About AAMC
AAMC is a private credit provider that originates alternative assets to provide liquidity and capital to under-served markets. AAMC works to employ capital light operating strategies that have historically been implemented across a variety of industry sectors. The Company currently also focuses on the development and licensing of a control system which increases the efficiency of electric vehicles. The Company acquired a non-exclusive license for a set of patents for a control system which seeks to optimize the efficiency of electric vehicles. Additional information is available at www.altisourceamc.com.
Forward-looking Statements
This press release and the attachments thereto contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “targets,” “predicts,” or “potential,” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The forward-looking statements contained in this release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual business, operations, results or financial condition to differ significantly from those expressed in any forward-looking statement.
Forward-looking statements include statements, other than statements of historical fact, regarding, among other things, the Company’s plans and its ability to successfully delist from the NYSE American and to deregister its Common Stock. These forward-looking statements involve substantial risks and uncertainties. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by our forward-looking statements, including, but not limited to, the timing and effectiveness of the Company’s delisting and deregistration of the Common Stock and the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
While forward-looking statements reflect our good faith beliefs, assumptions, and expectations, they are not guarantees of future performance. Such forward-looking statements speak only as of their respective dates, and we assume no obligation to update them to reflect changes in underlying assumptions, new information or otherwise, except as required by law.
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Charles Frischer
T: +1-813-474-9047
E: charles.frischer@altisourceamc.com
Source: Altisource Asset Management Corporation
FAQ
Why is Altisource Asset Management (AAMC) delisting from NYSE American?
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