Sonasoft Corp. Announces Intention to Voluntarily Delist

Rhea-AI Summary

Sonasoft Corp. (OTCQB: SSFT) announced its decision to voluntarily delist from the OTCQB market and revert to a private entity. The Board of Directors unanimously concluded that this move offers substantial benefits including cost savings, reduced managerial burdens, and better equity capital attraction as a private firm. Following the delisting, SSFT stock may still be quoted on the OTC Pink market, although trading conditions may worsen due to lower transparency and higher volatility. CEO Mike Khanna stated this decision aims to enhance long-term growth prospects.

Positive

• Significant anticipated cost savings
• Reduction in managerial burden
• Potential for improved capital raising opportunities as a private entity

Negative

• Loss of the SSFT ticker symbol
• No assurances of continued trading or market activity post-delisting
• Increased risks due to potential lack of liquidity and information on the OTC Pink market

SAN JOSE, CA, Feb. 15, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Today, Sonasoft Corp., a California Corporation, (OTCQB: SSFT) (“Sonasoft” or the “Company”) announced its intent to voluntarily delist from the OTC Markets Group OTCQB market, forfeit its “SSFT” ticker symbol, and revert to being a private entity. Prior to taking this decision, Sonasoft’s Board of Directors faithfully exercised its fiduciary responsibility to weigh the potential benefits and risks of these actions. The board saw significantly more benefits than drawbacks, including anticipated material cost savings, a significant reduction in managerial burden and the potential to more effectively attract equity capital as a private entity. After determining each director was acting independently, the Board of Directors unanimously resolved that it was in the best interest of the Company and its shareholders to take such action.

The Company advises its shareholders that, after the delisting, its common stock will no longer trade on the OTCQB market, but may be quoted on the OTC Pink market, also operated by OTC Markets Group. However, the Company can provide no assurances that any broker-dealer will continue to make a market in its common stock or that trading levels, liquidity, or quotation prices will be maintained. The Company also cautions its shareholders that trading on the OTC Pink market may be subject to limited availability of information, reduced transparency, and greater volatility.

CEO and Board Chairman Mike Khanna stated, “The Board has taken these actions unanimously in the firm conviction that doing so is in the best interests of all of our shareholders. In the current economic environment, we believe that the company will have better prospects for long-term growth and capital raising in the context of operating as a private entity. We also anticipate a material reduction in economic and administrative burden to result.”

This privatization and delisting will take full effect upon the completion of the FINRA and OTC notification process, which will commence on Thursday February 16th, 2023. Shares in the company will continue to trade on the OTCQB until this notification process is completed.

About Sonasoft Corp. (OTCQB: SSFT)

Sonasoft was founded in Silicon Valley in 2003. For more information about the company, please visit: https://www.sonasoft.com. Sonasoft specializes in building end-to-end AI applications supported by the SAIBRE AI ecosystem.

For investor-specific information, please visit: https://www.sonasoft.com/investors/

Investor Relations Contact Josh Rose, Chief of Staff, Sonasoft Corporation. Phone: (408) 708-4000 jrose@sonasoft.com

Forward-looking Statements

This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company’s financing plans; (ii) trends affecting the Company’s financial condition or results of operations; (iii) the Company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

FAQ

What is the reason for Sonasoft Corp. (SSFT) to delist from OTCQB?

Sonasoft Corp. is delisting from OTCQB to achieve significant cost savings, reduce managerial burdens, and enhance capital raising efforts as a private company.

How will the delisting of Sonasoft Corp. affect its trading status?

Post-delisting, Sonasoft's stock may be quoted on the OTC Pink market, but there is no guarantee of continued trading or market activity.

What date will Sonasoft Corp. (SSFT) complete its delisting?

Sonasoft Corp.'s delisting process will commence on February 16, 2023, and will take effect upon completion of the FINRA and OTC notification process.

What should shareholders of Sonasoft Corp. expect after the delisting?

Shareholders can expect reduced trading liquidity and transparency, and possible higher volatility in stock performance on the OTC Pink market.