On October 5, 2012, EdgeWave announced that it would be deregistering its common stock.
What does the term deregistration of EdgeWave common stock mean?
The term means that Edgewave is no longer obligated to report to the SEC. This means that with the exception of the Form 10-K and accompanying audited financial statements for the eight month transition periods ended August 31, 2012 and 2011, which is expected to be filed in November 2012, EdgeWave will no longer be required to file reports with the Securities Exchange Commission (SEC), including Forms 10-K, 10-Q and 8-K.
Does deregistration mean that I’m no longer an EdgeWave shareholder?
No, this does not affect your shares in EdgeWave.
How does deregistration affect my status as a shareholder of the Company?
Deregistering does not affect your status as a shareholder of the Company. By deregistering, EdgeWave, Inc. is no longer required to file regular periodic reports with the SEC. However. We will continue to announce important events through press releases, although you will not be receiving the same amount of information as was available in our previous SEC filings.EdgeWave stock may still be traded if brokers who have traded it in the past continue to do so. We expect our common shares will be quoted on the Pink Sheets, which is a centralized electronic quoting service for over-the-counter securities, as long as the market makers show an interest in trading EdgeWave’s common stock. However, we can offer no assurance that trading will continue in any forum.
What does this change mean for Customers and Partners?
Deregistration presents no changes for customers and partners going forward. EdgeWave is committed to the continued growth and development of our products and services.
Why did EdgeWave decide to make this change?
The Company carefully assessed all aspects of this important decision. We believe that the benefits to be derived from this move are significant. We will achieve substantial savings by not being required to file periodic SEC reports and from the legal and auditing expenses associated with being a reporting company.The trading volume of EdgeWave stock has been very low. After measuring the advantages of continuing our listing and registration against the significant costs that status incurs, the Company concluded that deregistering is in the best interest of our shareholders, customers, partners and suppliers. We believe this change will serve to increase our value as a successful and growing enterprise.
What information can I expect to receive about EdgeWave, Inc. in the future?
EdgeWave will continue to provide information regarding our products, events and other developments through our website and through press releases.