I posted this on June 22 last year, and just added a little to it. Since this is now PixelMags we're talking about, I still believe that this appears intentional as they couldn't get around certain missing data from one of their earlier 10-K's.
They may be using a "workaround" that's much faster and less expensive than trying to get several years worth of ducks lined up. Post-revocation offers the option of re-applying with the last two years worth of data, which seems like it might be a strategic move in this case. This could still prove to be story with a very happy ending. This excerpt explains the process:
Delinquent filers are SEC-registered companies that have failed to submit required annual and quarterly financial reports. Usually the agency sends delinquency notices before taking action; if they are ignored, trading in the company's stock may be suspended without notice. At the same time, the SEC will initiate an administrative proceeding to revoke registration. The company will be served with a letter informing it that it has ten days in which to make some kind of case for its failure to file. If it does not do so, registration will be revoked by default.
What the company does only matters if it hopes to resume trading one day. Several recent cases suggest the SEC is now recommending that issuers who want to make things right should accept revocation, and then get two years of audited filings in order and file a new Form 10. That has the advantage of relieving the company from the obligation to catch up with dozens of old financial reports, which might prove an impossible task, but it has the disadvantage of leaving shareholders in the lurch for as long as it takes to get the filings in, find a sponsoring market maker, and get a Form 211 approved by FINRA. The company may have problems raising money in the interim as well. (PixelMags will NOT have an immediate problem with capital, but will likely want to proceed with re-registering, as going public was the original intent so as to enable large capital raises to support large expansion efforts including mergers and/or acquisitions.
Getting back on the rails should be a snap given that we're talking about a company with tens of millions in annual revenue. They could still bring an excellent return.
They may be using a "workaround" that's much faster and less expensive than trying to get several years worth of ducks lined up. Post-revocation offers the option of re-applying with the last two years worth of data, which seems like it might be a strategic move in this case. This could still prove to be story with a very happy ending. This excerpt explains the process:
Delinquent filers are SEC-registered companies that have failed to submit required annual and quarterly financial reports. Usually the agency sends delinquency notices before taking action; if they are ignored, trading in the company's stock may be suspended without notice. At the same time, the SEC will initiate an administrative proceeding to revoke registration. The company will be served with a letter informing it that it has ten days in which to make some kind of case for its failure to file. If it does not do so, registration will be revoked by default.
What the company does only matters if it hopes to resume trading one day. Several recent cases suggest the SEC is now recommending that issuers who want to make things right should accept revocation, and then get two years of audited filings in order and file a new Form 10. That has the advantage of relieving the company from the obligation to catch up with dozens of old financial reports, which might prove an impossible task, but it has the disadvantage of leaving shareholders in the lurch for as long as it takes to get the filings in, find a sponsoring market maker, and get a Form 211 approved by FINRA. The company may have problems raising money in the interim as well. (PixelMags will NOT have an immediate problem with capital, but will likely want to proceed with re-registering, as going public was the original intent so as to enable large capital raises to support large expansion efforts including mergers and/or acquisitions.
Getting back on the rails should be a snap given that we're talking about a company with tens of millions in annual revenue. They could still bring an excellent return.
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