The rules and costs associated with a company being a publicly-traded entity has claimed another victim, as Women's Golf Unlimited, Inc. announced last week that they have filed Form 15, Certification & Notice of Termination of Registration, with the Securities and Exchange Commission.
The company stated in a release that they “decided to take this action is due to the increased cost of complying with the many new regulatory, auditing and board requirements imposed by the Sarbanes-Oxley act.”
Douglas A. Buffington, president of WGU, estimated the cost of complying with the requirements put in place after the Enron, Global Crossing and other corporate scandals, would exceed $200,000 and “take away the ability to invest in programs targeted to adding value to the company.”
The stock will trade through the Pink Sheets after the SEC acts on the request. GOLF now trades on the Over-The-Counter bulletin board.
Recent reports indicate that a public company must exceed $100 million to $200 million in sales to afford to comply with the new rules. Womens Golf Unlimited reported $12.1 million in sales for 2002.
