Due to low U.S. trading volumes over the last 12 months, Subsea 7 said Thursday it will de-register from the U.S. Securities and Exchange Commission after the delisting of the company's ADRs from NASDAQ goes into effect next week.
Subsea 7 will voluntarily deregister with the SEC on March 8, terminating its reporting obligations under the Securities Exchange Act of 1934. The NASDAQ delisting takes effect on March 7. SEC deregistration is expected to be finalized by June 7. The company's common shares will continue to trade on the Oslo Børs.
In a news release posted on Subsea 7's website, the company cited the costs and expenses associated with maintaing a dual listing and complying with SEC reporting obligations no longer made sense due to U.S. trading volumes over the past 12 months accounting for less than 3 percent of the worldwide trading volume of the company's shares.
Subsea 7 said the company will maintain its American Depository Receipt facility with Deutsche Bank as a Level 1 ADR program, where the company's American Depository Shares (ADS) will continue to trade in the U.S. over-the-counter market. As of, Jan. 31, Subsea 7 had more than 16 million ADS issued.
The company will continue to prepare its consolidted financial statements in accordance with International Financial Reporting Standards (IFRS), and will continue to publish financial statements and other information via the OAM service in Luxembourg and the Oslo Børs.
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