Accordingly, the Company today filed a Form 15 with the Securities and Exchange Commission to deregister its common stock under Section 12(g) of the Securities Exchange Act of 1934 (“Exchange Act”), and to suspend the Company’s reporting obligations under Section 15(d) of the Exchange Act. As a result of the filing of the Form 15, effective immediately, the Company no longer is required to file its periodic reports and certain other Exchange Act reports with the SEC.
The decision of the Company's Board of Directors to deregister its common stock was based on the consideration of numerous factors, including the large costs of preparing and filing periodic reports with the SEC, the increased outside accounting, audit, legal and other costs and expenses associated with being a public company, the burdens placed on Company’s management to comply with reporting requirements, and the low trading volume in the Company's common stock.
The costs, resources, and management attention being expended by the Company to remain an SEC reporting company were determined to be significantly greater than the possible benefits received by the Company and its shareholders from continued registration. “We believe that the deregistering will reduce the Company's administrative expenses, allow the Company to reinvest the savings in its products, and enable management to focus more of its time and resources on operational matters directly impacting shareholder value,” said Parrish Medley, President and Chief Executive Officer of DAVI Luxury Brand Group, Inc.
The OTC Markets have informed the Company that the Company's common stock will initially be quoted in the "Pink Sheets" (www.otcmarkets.com), an electronic quotation service for over-the-counter securities, under the same “MDAV” ticker symbol. However, there can be no assurance that any market maker or broker will continue to make a market in the Company's common stock.