LOS ANGELES (CelebrityAccess MediaWire) — Ticketing and events promotion company Tix Corp has delisted itself from the NASDAQ and will instead be traded over the counter on the OTCQX exchange.
The change of venue for the Tix Corps' stock listings were made after the company was warned by NASDAQ that they had fallen below the $1 minimum for being listed on that exchange. The company says it chose OTCQX as they believe it may provide a more liquid market than competing exchanges such as the more widely known 'Pink Sheets.' OTCQX-listed issuers are still required to publicly disclose annual audited financial statements, unaudited quarterly financial statements and current information pertaining to material events.
Tix Corp says that the move will help them to realize significant savings of as much as $1 million a year due in expenses associated with their NASDAQ listing.
"We're taking this important step with our shareholders' interests in mind. The burden of reporting (to the SEC) under the Exchange Act, and in recent years the added burden of Sarbanes-Oxley, has become too expensive for many small companies such as Tix Corporation. After careful consideration, the Company believes that by moving its stock listing to the OTCQX and deregistering its common stock, it can re-invest significant resources to help drive growth and profitability. We believe that by utilizing the OTCQX platform, material savings can be achieved while still providing reliable information to our shareholders."
This is potentially good news for Tix Corp. investors after the company had posted a $1.3 million loss, primarily from their live entertainment operations. The lack of profitability from this aspect of the company has led Tix Corp to retain financial advisors B. Riley & Co. as they weigh divesting the division, which is made up of Magic Arts & Entertainment and NewSpace Entertainment. — CelebrityAccess Staff Writers