Bestway (NASDAQ:BSTW)
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Bestway, Inc. Announces Delisting By Nasdaq of Its Common Stock
DALLAS, Dec. 20 /PRNewswire-FirstCall/ -- Bestway, Inc. (NASDAQ:BSTW) has been
notified by NASDAQ that its common stock will be delisted from the NASDAQ
SmallCap Market effective at the opening of the market on Tuesday, December 21,
2004.
NASDAQ has advised the Company that the common stock will be delisted because
of the Company's failure to certify its compliance with the new audit committee
composition, audit and nominating committee charters, executive sessions and
code of conduct requirements, as set forth in NASDAQ Marketplace Rules
4350(d)(2)(A), 4350(d)(1), 4350(c)(4)(B), 4350(c)(2) and 4350(n), respectively.
The Company had disclosed in November 2004 that it had received a letter from
NASDAQ indicating that the Company was not in compliance with the certification
requirement and that the Company would request a hearing with the NASDAQ
Hearing Panel on the matter. The Company requested a written hearing, which
was held on December 9, 2004. In connection with the hearing, the Company
discussed its intent to go private with NASDAQ and described the status of the
transaction. The Company requested that NASDAQ grant an extension to the
Company regarding the listing requirements until the Company's going-private
transaction was completed. This appeal was denied by NASDAQ. Prior to
undertaking the going-private transaction, the Company was in the process of
complying with the NASDAQ listing requirements, including the matters set forth
in the certification requirements described above.
NASDAQ has also advised the Company that its securities may be immediately
eligible for quotation on the OTC Bulletin Board, effective with opening of
business on December 21, 2004, provided a market maker enters a quote on the
first day of eligibility. The OTC Bulletin Board symbol assigned to the
company is BSTW. In addition, the Company's common stock may become quoted in
the Pink Sheets upon application by a market maker. Because the Company
intends to effectuate the going-private transaction, the Company will cease its
NASDAQ listing and will not appeal the NASDAQ ruling at this time.
The Company had previously announced that it had filed a preliminary proxy
statement and Schedule 13E-3 with the Securities and Exchange Commission with
the intended result that it will cease to be a publicly held company and will
become a private corporation. "As a private corporation, the common stock
would not be eligible for NASDAQ listing," commented David A. Kraemer,
President and Chief Executive Officer. "By terminating the registration of our
common stock and relieving ourselves of the reporting requirements of the SEC
and other obligations, we estimate that we will save approximately $775,000,
consisting of $115,000 in fees historically incurred, $590,000 in fees that
would otherwise be expected to be incurred in order to comply with Section 404
of Sarbanes Oxley, and $70,000 in fees that would otherwise be expected to be
incurred in order to comply with other provisions of Sarbanes- Oxley once the
termination of the registration becomes effective. We believe that this
decision is in the best interest of our shareholders and the Company and remain
committed to the going-private transaction." The Company is currently awaiting
completion of the SEC review of its proxy statement and Schedule 13E-3 before
proceeding with a reverse/forward stock split and subsequent termination of its
registration. All documents filed with the SEC that describe the proposed
going-private transaction can be seen by going to http://www.bestwayrto.com/
under Investor Relations, SEC Filings. All shareholders will receive a
definitive proxy statement once the SEC has completed its review process.
The Company has been engaged in the rent-to-own industry since 1987. The
Company owns and operates a total of sixty-nine stores located in the states of
Alabama, Arkansas, Georgia, Mississippi, North Carolina, South Carolina and
Tennessee. The stores' operations are controlled and monitored through the
Company's management information system networked with its home office in
Dallas, Texas.
This press release and the guidance above contain various "forward-looking
statements" that involve risks and uncertainties, including forward-looking
statements regarding: the delisting by NASDAQ of the Company's common stock,
the subsequent quotation of the common stock on the OTC Bulletin Board and/or
the Pink Sheets, completion of the "reverse/forward stock split" and
termination of the registration of the Company's common stock. These forward-
looking statements involve risks and uncertainties that may cause actual
results to differ from these expectations. Factors that could cause actual
results to differ include: the decision by one or more market makers to enter
quotes on the Company's common stock on the first day of eligibility, the
Company's ability to successfully complete the reverse/forward stock split, the
Company's ability to reduce the number of shareholders to fewer than 300 and
terminate the registration of its common stock, the Company's ability to
achieve the anticipated cost savings upon termination of the registration of
its common stock, and the risk factors set forth from time to time in the
Company's filings with the Securities and Exchange Commission.
DATASOURCE: Bestway, Inc.
CONTACT: Beth Durrett, Chief Financial Officer of Bestway, Inc.,
+1-214-630-6655, or
Web site: http://www.bestwayrto.com/