Thursday, September 23, 2010

Cuisine Solutions scraps common stock - Washington Business Journal:

idellecromwell1991.blogspot.com
The Alexandria-based firm says its board has approved a recommendatio n from a special committee made up of its independentf directors to cease registration ofthe company’ s common stock. Cuisine Solutions says it is taking the stepw because of the substantiak and increasing costs of being an SEC reportinv company and of regulatory compliancde withthe Sarbanes-Oxley Act. The company says becomingy a privately-held company will save it about $800,00p0 a year.
It also cites the limited volumee of trading and liquidity ofthe company’s The company plans to submit the plan, which will also includ a premium to some existing shareholders, at a specialo meeting for shareholders later this year. The plan calla for paying small shareholders a premium while giving large shareholders a stake inthe company. Those holdiny 5,000 shares or fewer will received $1.39 per share. Cuisine Solutions stock (NYSE: FZN), whichb closed at 93 cents Wednesday, was trading at $1.11 Thursday. Cuisine Solutions saw revenue fall in almos every category of its sales channels last Salesto airlines, food service customers, retailk outlets and restaurants all declined.
Saless to the military rose more than 23 percent and now accounty for the largest share ofits revenue. Cuisine Solutione fiscal third quarter revenuewas $21.21 million, down 16.4 percent from a year ago. It reportefd a net loss of $691,000, or 4 centsd per share compared to a net lossof $410,00p0 or 2 cents per shar in the same quarter a year ago.

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