Fortress International Group Considering Returning to Nasdaq Exchange
Fortress International Group's (OTC: FIGI) shareholders have been wondering if the Company will return to Nasdaq listing, and after reaching out to the company, this seems like it could be a possibility.
In March 2010, Fortress International Group voluntarily delisted from Nasdaq exchange. Trading of its common stock shares moved to OTC. The company cited cost as a primary driver for the move, as shares were trading below $1. Interestingly, as soon as they delisted, shares moved back above the $1 price level.
Fortress International offers services primarily to government agencies and private businesses. The company designs, builds and maintains an array of different facilities. These include data centers, trading floors, call centers, network operation centers, communication facilities, laboratories, and secure bunkers.
From the March 12th press release, "As part of our strategy to conserve resources and improve cost efficiencies, management and the Board have determined that the benefits of a NASDAQ listing no longer outweigh the significant legal, accounting and administrative costs associated with maintaining a listing on the Nasdaq Capital Market," said Chief Executive Officer Thomas P. Rosato. "As the markets in which we operate continue to show signs of gradual improvement, the additional resources we gain from this move better enable us to focus our efforts on the growth of our business, a return to sustained profitability and increased shareholder value."
Benzinga recently reached out to Fortress International Group's Vice Chairman Harvey Weiss about a possible relisting on the Nasdaq.
"We remain fully compliant with the SEC, which allows us to weigh the possibility of returning to the Nasdaq", Weiss stated. "We will be reporting earnings on Thursday, and while we likely won't discuss the possibility of a Nasdaq relisting on the call, note that it is being discussed."
Shares of Fortress International are trading nearly 150% higher since delisting from the Nasdaq. Fortress International announced on July 6th that, during the second quarter of 2011, the Company was awarded new contracts totaling $29.1 million. This total included $9.4 million in new, recurring revenue contracts and service upgrade projects from the Company's Facilities Management group, representing a 50% increase over bookings in the first quarter of 2011.
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