VIA optronics AG Announces Intention to Voluntarily Delist its ADSs from the New York Stock Exchange
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Insights
The decision by VIA optronics AG to delist from the NYSE and terminate its SEC registration represents a significant shift in its capital markets strategy. From a financial perspective, the move to delist due to low liquidity and high maintenance costs suggests a strategic pivot towards cost efficiency. This could potentially reduce the company's financial burden, freeing up capital for reinvestment into core business areas. However, it's important to note that delisting may also lead to a narrower investor base, as U.S. investors may find it more challenging to invest in the company. This could impact the company's share price and valuation, as the pool of potential investors shrinks.
Moreover, the cessation of SEC reporting obligations might raise concerns about transparency and corporate governance standards among the remaining investors. While this move could streamline operations and reduce regulatory overhead, it also means that investors will have less regular and detailed information about the company's financial health and strategic direction. This could affect investor confidence and potentially influence the company's cost of capital in the long run.
From a market perspective, VIA optronics AG's decision to delist could be indicative of broader trends in the market, particularly for international companies listed on U.S. exchanges. The cost-benefit analysis of maintaining a U.S. listing versus the actual trading volume and investor interest is a important consideration for foreign companies. VIA's move might prompt other firms in similar situations to evaluate the value of their U.S. listings.
Additionally, the company's intention to focus more on managing its businesses and strengthening customer relationships after delisting suggests a strategic refocusing. This could be a response to competitive pressures in the interactive display solutions market or a shift in customer demand. The potential benefits of this reallocation of resources might not be immediate but could lead to improved product offerings or market positioning in the long term.
The legal implications of VIA optronics AG's delisting and deregistration are multifaceted. The process of delisting involves specific legal steps, such as filing a Form 25 with the SEC and must comply with both SEC regulations and NYSE rules. The company's management must ensure that all legal requirements are met to avoid any potential issues or delays.
Furthermore, by deregistering, VIA optronics AG will no longer be subject to the same level of U.S. regulatory oversight, which includes periodic filings, disclosures and compliance with Sarbanes-Oxley Act requirements. While this reduces regulatory burden, it also means that the company will operate with more flexibility regarding financial reporting and corporate governance. Investors should be aware of these changes, as they may affect the way they assess the company's legal and regulatory risk profile.
The Company today notified the NYSE of its intent to voluntarily delist its ADSs from the NYSE, pursuant to a resolution adopted by its Supervisory Board today.
The Company believes that delisting and deregistration of the ADSs from the
The Company currently anticipates that it will file with the SEC a Form 25 relating to the delisting and deregistration of its ADSs on or around April 19, 2024. Unless the Form 25 is earlier withdrawn by VIA, the delisting of the ADSs will be effective 10 days after the filing of the Form 25. Accordingly, VIA anticipates that the last day of trading of the ADSs on the NYSE will be on or about April 29, 2024.
Following the delisting of its ADSs from NYSE and after the Company has made all necessary SEC filings, including its delayed annual report on Form 20-F for the year ended December 31, 2022, and is otherwise able to do so, the Company plans to file with the SEC a Form 15 to deregister its ADSs, and suspend its reporting obligations, under the
As previously disclosed, the Company received notice from the NYSE that it is not currently in compliance with the continued listing standards of the NYSE.
About VIA:
VIA is a leading provider of interactive display solutions for multiple end markets in which superior functionality or durability is a critical differentiating factor. Its customizable technology is well-suited for high-end markets with unique specifications and demanding environments that pose technical and optical challenges for displays, such as bright ambient light, vibration and shock, extreme temperatures, and condensation. VIA’s interactive display systems combine system design, interactive displays, software functionality, cameras, and other hardware components. VIA’s intellectual property portfolio, process know-how, optical bonding, metal mesh touch sensor and camera module technologies provide enhanced display solutions built to meet the specific needs of its customers.
Forward Looking Statement Disclosure:
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements relating to: the Company’s expectations as to the timing of its delisting and deregistration process; the anticipated benefits and cost savings of such actions; and other statements that are not historical facts. The words, without limitation, “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statement. Important factors that could cause actual events to differ materially from those in the forward-looking statements herein include actions taken or to be taken by the Supervisory Board or the Company’s auditors in connection with the Supervisory Board’s findings with respect to the previously disclosed investigation. In particular, the Supervisory Board’s findings may continue to adversely affect the Company’s ability to file the 2022 20-F and other required reports with the SEC in the anticipated time frame or at all. Other important factors include the risks described under Item 3. “Key Information—D. Risk Factors,” in our Annual Report on Form 20-F for the financial year ended December 31, 2021, as filed with the SEC. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. Any forward-looking statements contained in this press release are based on the current expectations of VIA’s management team and speak only as of the date hereof, and VIA specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
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Investor Relations for VIA:
Griffin Morris
Margaret Jones
Alpha IR Group
Phone: +1 312-445-2870
Email: VIAO@alpha-ir.com
Media:
Alexandra Müller-Plötz
Phone: +49-911-597 575-302
Email: AMueller-Ploetz@via-optronics.com
Source: VIA optronics AG
FAQ
Why is VIA optronics AG (VIAO) delisting its American Depository Shares (ADSs) from the New York Stock Exchange (NYSE)?
When does VIA optronics AG (VIAO) plan to file for delisting and deregistration with the U.S. Securities and Exchange Commission (SEC)?
What benefits does VIA optronics AG (VIAO) expect from delisting and deregistration of its ADSs from the U.S. public markets?
