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Home > BizTimes Daily > Archives > September 30, 2008
Middleton Doll Co. plans to deregister stock
Published September 30, 2008 - BizTimes Daily
The Middleton Doll Company announced that its board of directors has approved a plan to deregister the company's common stock, thereby terminating its obligations to file reports with the U.S. Securities and Exchange Commission (SEC).
The transaction would be accomplished through a 1,000-to-1 reverse stock split of shares of the company's common stock. All shareholders with less than one share after the reverse-split will have their partial shares cashed out at a price of 50 cents in cash per share on a pre-split basis. Shareholders with one or more shares after the reverse-split will continue as shareholders of the company, with any fractional share being rounded up to the next whole number of shares.
The proposed plan should result in a direct cost savings for the company in the near term because it no longer will be required to report to the SEC. Also, the plan will allow the company to avoid the substantial additional costs associated with the compliance and auditing requirements of the Sarbanes-Oxley Act.
The Middleton Doll Company currently operates in two segments, consumer products and financial services. The company's consumer products segment is comprised of Lee Middleton Original Dolls Inc., a designer and marketer of lifelike collectible and play dolls, and License Products, Inc., which does business as FirsTime Manufactory, a designer and marketer of clocks and home decor products that are sold to major national retailers.
The company's financial services segment is comprised primarily of the remaining assets of the lending and real estate leasing business of its former subsidiary, Bando McGlocklin Small Business Lending Corp., now owned by Lee Middleton Original Dolls. The company does not intend to continue in the financial services segment after the remaining financial services segment's assets are sold.
