GRANOT, Israel, March 20, 2013 (GLOBE NEWSWIRE) -- D. Medical Industries Ltd. (OTCBB:DMEDF) (TASE:DMED) ("D. Medical" or the "Company"), announced today that its Board of Directors approved the filing of a Form 15F with the Securities and Exchange Commission ("SEC") to voluntarily deregister its ordinary shares under the Securities Exchange Act of 1934 (the "Exchange Act"). The Company intends to file the Form 15F on or about March 29, 2013. The Company's reporting obligations under the Exchange Act will be suspended immediately upon the filing of Form 15F and will terminate 90 days thereafter if there are no objections from the SEC. The Company reserves the right to delay or withdraw the filing for any reason prior to their effectiveness.
Following the deregistration, the Company's ordinary shares may continue to be quoted on the OTC Markets Group Inc. electronic quotation service (the "Pink Sheets") if market makers commit to make a market in the Company's shares. However, the Company has not arranged for quotation on the Pink Sheets or listing or quotation on any other exchange or quotation medium within the U.S. Thus, the Company can provide no assurance that trading in its ordinary shares will be quoted on the Pink Sheets or otherwise. The Company's ordinary shares will continue to trade on the Tel Aviv Stock Exchange Ltd. (TASE:DMED).
In deciding to voluntarily deregister its ordinary shares, the Company's Board of Directors considered several factors, including the following:
- low U.S. trading volume;
- high public company costs in the U.S., including those associated with preparation and filing of the Company's periodic reports with the SEC;
- significant management time spent on U.S. regulatory compliance; and
- the potential impact of deregistration on Company shareholders resident in the U.S.