Qualstar to Delist From Nasdaq

Qualstar Corporation will voluntarily delist its common stock from The Nasdaq Stock Market and, based upon ownership of its shares by fewer than 300 holders of record, deregister its common stock under the Securities Exchange Act of 1934 and suspend its public reporting obligations.

Steven N. Bronson, CEO, stated: “To better position Qualstar to accelerate long-term profitable growth, we undertook a thorough and thoughtful review of our cost structure, including costs associated with being a Nasdaq listed and SEC reporting company. Our board of directors concluded that the benefits to the company and its stockholders of continued Nasdaq listing and SEC reporting did not justify the costs of maintaining that listing and continuing to publicly report. We currently have a strong balance sheet with no debt, and do not need to raise equity capital to pursue our business initiatives. The resulting reduction in operating expenses will allow us to invest greater amounts towards product development and sales, which is a superior use of our resources. The cessation of public reporting will also enable us to better direct our management resources on the commercialization of our products. For these reasons, our board voted unanimously to voluntarily delist from Nasdaq and deregister under the Exchange Act.”

The company intends to file a Form 25 with the SEC on or about April 20, 2020, and the Nasdaq delisting is expected to become effective on or about April 30, 2020, at which time trading on Nasdaq will cease.

The common stock may thereafter be eligible for quotation on the Pink tier of OTC Markets Group if market makers commit to making a market in the company’s shares. The company can provide no assurance that trading in its common stock will continue on the OTC Markets Group or otherwise.

After the Nasdaq delisting becomes effective, the company will file a Form 15 with the SEC on or about May 6, 2020, at which time the company anticipates that its obligation to file periodic reports under the Exchange Act, including annual, quarterly and current reports on Form 10-K, Form 10-Q and Form 8-K, respectively, will be suspended, and that all requirements associated with being an Exchange Act-registered company, including the requirement to file current and periodic reports, will terminate permanently 90 days thereafter.

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