Frequently Asked Questions about the deregistration process
Q. What is deregistration?
A. As a result of deregistering, Hines will no longer be a public company and its obligation to file reports and other documents with the SEC will be suspended immediately.
Q. Why is Hines eligible to deregister?
A. Hines is eligible to deregister because it has fewer than 300 stockholders of record.
Q. Why is Hines choosing to deregister?
A. The reasons for a company to deregister include the following:
- Deregistering significantly reduces the costs, both direct and indirect, incurred by Hines each year in connection with preparing and filing periodic reports with the SEC and otherwise complying with the obligations of being a public company, including the substantial increase in costs associated with the requirements of the Sarbanes-Oxley Act of 2002 and the related SEC rules.
- Senior management will spend more time on Hines’ operations and less time on report preparation and regulatory compliance.
- Hines has historically had low trading volume of its common stock and currently does not rely on the capital markets to raise capital.
- The ownership of Hines’ common stock is very concentrated and Hines has relatively few stockholders.
Q. How do I access Company information?
A. The Company’s press releases and other information about its business will continue to be posted on the Company’s website. The Company will no longer be required to provide stockholders with quarterly and annual financial statements and other information and does not anticipate providing such information in the future
Q. How do I trade my current shares of common stock and what happens to my holdings?
A. Hines’ common stock still continue to exist after it deregisters and it expects, but cannot guarantee, that its common stock will continue to be quoted on the “Pink Sheets” after it deregisters. There can also be no assurance that any brokerage firms will continue to make a market in the common stock after the deregistering. The “Pink Sheets” is a provider of pricing and financial information for the over-the-counter securities markets. It is a centralized quotation service that collects and publishes market maker quotes in real time primarily through its website, www.pinksheets.com, which provides stock and bond price quotes, financial news, and information about securities.