Kelso Technologies Inc. Announces Intention to Delist From NYSE American
- None.
- The voluntary delisting from NYSE American due to non-compliance with listing standards may impact the company's visibility and accessibility to U.S. investors, potentially leading to reduced liquidity and trading volume for the shares.
Insights
The decision by Kelso Technologies Inc. to delist its shares from the NYSE American is a strategic financial move that could have implications for the company's liquidity and investor base. By focusing solely on the TSX, Kelso may reduce listing costs and administrative burdens, potentially improving its financial efficiency. However, this move could also limit the company's exposure to a broader range of investors and decrease the liquidity of its shares, as some U.S. investors may be less inclined to invest in a foreign exchange.
Furthermore, the avoidance of a reverse stock split suggests that the company is considering the potential negative perceptions such an action might have on shareholder value. A reverse split is often viewed as a measure to prop up the share price artificially and can be interpreted as a lack of confidence in the company's ability to increase its share price through operational performance. The company's decision to not pursue this route could reflect a focus on long-term shareholder value over short-term share price maintenance.
From a market perspective, Kelso's voluntary delisting from the NYSE American after failing to meet the Listing Standards due to a low share price could signal a strategic retreat to consolidate its market position. The delisting may result in a narrower investor outreach, which could impact the stock's volatility and trading volume. On the other hand, the company's commitment to remain on the TSX could be seen as a reaffirmation of its focus on its core investor base in Canada.
It's important to consider the potential impact on the company's reputation as well. Investors and analysts often associate delisting with financial instability or poor performance, although this may not necessarily be the case. The company's transparent communication regarding its reasoning behind the delisting could mitigate some reputational risks. Additionally, the fact that Kelso is not seeking another U.S. listing suggests a strategic shift to optimize its financial and operational resources.
Legally, the process of delisting involves regulatory implications and procedural adherence to both U.S. and Canadian securities laws. Kelso's intention to file a Form 25 with the U.S. Securities and Exchange Commission is a standard procedure for delisting and withdrawing from a U.S. exchange. This action will relieve the company from certain SEC reporting obligations, which could reduce compliance costs and complexity associated with dual listing.
However, it is crucial for the company to maintain transparency and adhere to Canadian securities regulations as it continues to trade on the TSX. The delisting process must be managed carefully to ensure that all legal requirements are met and to minimize any potential negative impact on shareholders. The company's decision not to pursue another U.S. listing indicates a strategic choice to streamline legal and regulatory processes, which could be beneficial from a corporate governance standpoint.
VANCOUVER, British Columbia and BONHAM, Texas, March 05, 2024 (GLOBE NEWSWIRE) -- Kelso Technologies Inc. (“Kelso” or the “Company”), (TSX: KLS), (NYSE American: KIQ) today announced that it has notified the NYSE American (“NYSE American”) of its intention to voluntarily delist its common shares (“Shares”) from the NYSE American. The Shares will continue to trade on the Toronto Stock Exchange (“TSX”).
As previously announced in its press release dated December 18, 2023, Kelso received a notification letter (the "Notice") dated December 12, 2023 from the NYSE American stating that the NYSE American staff had determined that the Company's securities had been trading at a low price per share for a substantial period of time and as a result, the Company was not in compliance with the NYSE American’s continued listing standards (the “Listing Standards”).
After careful consideration, the Company has evaluated the benefits and costs of continuing its listing on NYSE American and has concluded that it is appropriate to voluntarily delist from the NYSE American at this time. With the Shares concurrently trading on the TSX, the Company believes the costs associated with a continued U.S. stock exchange listing, as well as the administrative burdens and requirements associated with maintaining a dual listing, are not justified at this time. The Company has also concluded that a reverse split of the Company’s Shares of a magnitude necessary to come into compliance with the Listing Standards is not a desirable alternative at this time and would not be in the best interest of the Company’s shareholders. The Company does not expect to seek to list its shares on another U.S. national securities exchange or U.S. quotation system.
The Company intends to file a Form 25 with the U.S. Securities and Exchange Commission on or about March 15, 2024, which Form would become effective 10 days following filing thereof, resulting in the delisting of the Shares from NYSE American on or about March 25, 2024. The Company’s financial statements, press releases and other information will continue to be available on SEDAR+ at www.sedarplus.com, on EDGAR at www.sec.gov and on the Company’s website at www.kelsotech.com.
About Kelso Technologies
Kelso is a diverse engineering company that specializes in the creation, production, sales and distribution of proprietary products used in rail and automotive transportation. The Company’s rail engineering business has been developed as a designer and reliable domestic supplier of unique high-quality rail tank car valves that provide for the safe handling and containment of hazardous and non-hazardous commodities during rail transport. The automotive division of the Company has created the first proven automated suspension-based Advanced Driver Assistance System for commercial mission-critical wilderness operations. All Kelso products are specifically designed to address the challenging issues of public safety, worker well-being and potential environmental harm while providing effective and efficient operational advantages to customers. Kelso’s innovation objectives are to create products that diminish the potential dangerous effects of human and technology error through the use of the Company’s portfolio of proprietary products.
For a more complete business and financial profile of the Company, please view the Company's website at www.kelsotech.com and public documents posted under the Company’s profile on www.sedarplus.ca in Canada and on EDGAR at www.sec.gov in the United States.
On behalf of the Board of Directors,
James R. Bond, CEO and President
Legal Notice Regarding Forward-Looking Statements: This news release contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include statements with respect to the intention to delist the Shares from the NYSE American; the costs associated with a continued U.S. stock exchange listing not being justified; the intention to file a Form 25 with the U.S. Securities and Exchange Commission; and timing for the delisting of the Shares from NYSE American. Although Kelso believes the Company’s anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, they can give no assurance that such expectations will prove to be correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Kelso to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information, including without limitation that the risk that the longer-term effects on the rail and automotive industries including high interest rates, inflation and short supply chain issues may last much longer than expected delaying R&D schedules and business orders from customers; litigation risks; that the development of new products may proceed slower than expected, cost more or may not result in a salable product; that tank car producers may produce or retrofit fewer than cars than expected and even if they meet expectations, they may not purchase the Company’s products for their tank cars; capital resources may not be adequate enough to fund future operations as intended; that regulatory compliance including Canadian Motor Vehicle Safety Standards may be delayed or cancelled; that the Company’s products may not provide the intended economic or operational advantages to end users; that KXI Application Development Agreements may not be successful and deliver anticipated revenue streams; that the Company’s new rail and automotive products may not receive regulatory certification; that customer orders may not develop or be cancelled; that competitors may enter the market with new product offerings which could capture some of the Company’s market share; that a new product idea under research and development may be dropped if ongoing product testing and market research reveal engineering and economic issues that render a new product concept infeasible; and that the Company’s new equipment offerings may not capture market share as well as expected. Except as required by law, the Company does not intend to update the forward-looking information and forward-looking statements contained in this news release.
For further information, please contact:
| James R. Bond, CEO and President | Richard Lee, Chief Financial Officer | Corporate Address: |
| Email: bond@kelsotech.com | Email: lee@kelsotech.com | 13966 - 18B Avenue South Surrey, BC V4A 8J1 www.kelsotech.com |
FAQ
Why is Kelso Technologies Inc. voluntarily delisting its common shares from NYSE American?
What was the reason behind Kelso's decision to continue trading on TSX?
Is Kelso Technologies Inc. planning to list its shares on another U.S. exchange?
What alternative did Kelso consider instead of delisting from NYSE American?
