In a dramatic announcement, Sorrento Tech Inc (NASDAQ:ROKA) said today it would voluntarily pull its stock off the Nasdaq market and expects to de-register its stock completely, going private.
In reaction, shares of Sorrento are plunging nearly 30% to $0.66. ROKA has a 1-year high of $6.20 and a 1-year low of $0.60. The stock’s 50-day moving average is $1.02 and its 200-day moving average is $1.66.
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The decision to delist from NASDAQ resulted from the Board of Directors’ review of numerous factors, particularly the previously announced plan to engage in a complete dissolution and liquidation, and the cost and feasibility of ongoing compliance with the NASDAQ listing requirements in light of the Company’s planned dissolution and liquidation.
Once it has de-listed its stock, Sorrento said it will also file papers with the SEC to completely deregister its common stock, essentially making it a private company. Officials said that Sorrento is going private because of the costs and demands on management time from having to maintain compliance with SEC rules and Sarbanes-Oxley standards.
The Company expects that its obligation to file periodic and current reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, will be suspended upon the filing of the Form 15.
Sorrento’s stock would come off the market on December 29 – 10 days after the SEC received the Form 25 document.
Sorrento is a molecular diagnostics company which focuses on providing advanced testing solutions for the detection of foodborne pathogens. Its products include atlas system, atlas listeria detection assay and atlas salmonella detection assay. The company was founded by Paul G. Thomas in September 2009 and is headquartered in Warren, NJ.