Devcon deregisters

In what appears to be a money-saving move, the Florida-based super-regional security company Devcon announced yesterday that it was deregistering itself from the SEC. This means that it won't have to file certain forms with the SEC. It is able to make this move because it has fewer than 300 people who hold its common stock. The deregistration is effective yesterday, Oct. 10. Devcon had been trading on the OTCBB since May when it was delisted from NASDAQ. Here's a story I wrote about that. At that time, Devcon's president Robert Farenhem told me the move had nothing to do with the underlying health of the business. From the story: Rather, he said, this move is necessitated by a breach of technical requirements to be listed on Nasdaq exchange, which he characterized as “harsh accounting requirements that security businesses suffer.” Devcon was notified in mid April that it was out of compliance with the Nasdaq requirement that it have a minimum of $10 million in shareholder equity. “Two and a half years ago we had $2.5 million in RMR,” Farenhem said, “and today we have $3.6 million in RMR … but over that period of time we have amortized about $40 million [for the purchase of Guardian International in 2007].” The Devcon statement yesterday said that Devcon "expects, but cannot guarantee, that its common stock will continue to be quoted on the Pink Sheets after it is deregistered." I'll be following up on this in the December issue.