RADOR, PA — Safeguard Scientifics, Inc. (Nasdaq: SFE) has announced its intention to voluntarily delist its shares of common stock from the Nasdaq Stock Market. This news follows the company’s previous announcement to deregister its common stock under the Securities Exchange Act of 1934.
The Delaware County-based private equity and venture capital firm filed Form 25 with the Securities and Exchange Commission (SEC) on Friday to initiate the delisting process. According to the company’s timeline, the delisting will occur ten days after the filing, suspending trading on February 12, 2024, before the market opens.
Upon the suspension of trading, Safeguard Scientifics plans to file a Form 15 with the SEC, certifying that it has fewer than 300 shareholders of record. This move will terminate the registration of the company’s common stock under Section 12(g) of the Exchange Act.
Following the delisting, any remaining trading activity involving the company’s common stock will be relegated to privately negotiated sales or potentially on an over-the-counter (OTC) market. Safeguard Scientifics anticipates having its common stock quoted on a market operated by OTC Markets Group Inc., preserving a trading platform for its common stock.
However, the company also cautioned that there is no guarantee that a broker will continue to make a market in the common stock. The future of trading the company’s common stock on an OTC market or otherwise remains uncertain.
This announcement marks a significant milestone in Safeguard Scientifics’ corporate strategy, focusing on the company’s transition away from public markets. It is a development that market watchers and investors will monitor closely in the coming weeks.
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