Harold's shareholders approve deregistration of Co shares
07 Dec '07
3 min read
After the Reverse/Forward Stock Split is effective, it is anticipated that the Company will file a Form 15 with the SEC to voluntarily deregister its Common Stock and suspend its obligations to file certain reports with the SEC, including Forms 10-K, 10-Q and 8-K. After deregistering with the SEC, the Company will no longer be quoted on the OTCBB but will continue to be quoted on the Pink Sheets under the symbol HLDI.
In order to enable the Company to have adequate statutory surplus to cash out the holders of less than 1,000 shares, RonHow, LLC converted $4.5 million of existing subordinated debt into $4.5 million of stated value of Series 2006-B Preferred Stock pursuant to the terms of existing conversion option agreements. $2.2 million of the Series 2006-B Preferred Stock is convertible at the option of the holder into Common Stock at $0.4055 per share and the remaining $2.3 million is convertible at $0.43 per share.
In addition to approving the amendments to the Company's Certificate of Incorporation necessary for the Reverse/Forward Stock Split, the Company's shareholders re-elected all of the seven (7) members of the Company's current board of directors to serve additional one-year terms.
The Company's shareholders also approved an amendment to the Company's Certificate of Incorporation to increase the number of shares of Preferred Stock the Company is authorized to issue from 1,000,000 shares to 2,000,000 shares.
Founded in 1948and headquartered in Dallas, Texas, Harold's Stores Inc currently operates 44 upscale ladies' and men's specialty stores in 19 states. The Company's Houston locations are known as "Harold Powell."
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