Hadera Paper delists, deregisters its ordinary shares from the NYSE, claiming less than 5% of its global average trading volume last year took place in U.S.; company's shares will continue to trade on Tel Aviv Stock Exchange
November 30, 2011
– Hadera Paper Ltd. (AMEX:AIP - News) (the "Company" or "Hadera Paper") today announced that its Board of Directors has approved the voluntarily delisting of its ordinary shares from the NYSE Amex and the voluntarily deregistration of its ordinary shares under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), after which the Company will cease filing reports with the Securities and Exchange Commission (the "SEC").
Hadera Paper's ordinary shares will continue to trade on the Tel Aviv Stock Exchange (TASE: HAP.TA - News). In addition, the Company intends to continue to publish financial and other material information in English on its website.
The Company has decided to voluntarily delist and deregister its ordinary shares because less than 5% of its worldwide average daily trading volume in the last year took place in the U.S. The Company's Board of Directors authorized the delisting and deregistration after concluding that the consequences of remaining listed on NYSE Amex, including costs associated with regulatory compliance, outweighed the benefits of U.S. public company status to the Company and its shareholders.
In deciding to voluntarily delist and deregister its ordinary shares, Hadera Paper's Board of Directors considered several factors, including the following:
After delisting from NYSE Amex, the Company's ordinary shares may be quoted on the OTC Markets Group Inc. electronic quotation service (the "Pink Sheets") if market makers commit to make a market in the Company's shares. However, the Company has not arranged for quotation on the Pink Sheets or listing or quotation on any other exchange or quotation medium within the U.S. Thus, the Company can provide no assurance that trading in its ordinary shares will be quoted on the Pink Sheets or otherwise. Moreover, the Company's ordinary shares may become more illiquid in the U.S. once it is no longer traded on the NYSE Amex.