Synbiotics Corp., a Carlsbad-based maker of veterinary diagnostics and related products, said it is seeking shareholder approval to go private and deregister its stock from public trading.
In order to qualify for private status, and to get out from having to file regular financial reports with the Securities and Exchange Commission, the company said it would reduce the number of shareholders through a 2,000-for-1 reverse stock split.
To accommodate the payment of 13 cents per share for fractional shares, Synbiotics agreed to sell 180 newly issued and unregistered shares of preferred stock to Redwood Holdings, LLC for $180,000 cash. Redwood Holdings is an affiliate of Synbiotics’ controlling shareholder, Redwood West Coast, LLC.
Synbiotics said it should save a minimum of $245,000 in expenses in the first full year associated with maintaining its public status.
Synbiotics reported a net loss of $647,000 on $19.2 million in revenues for 2004, compared to a net profit of $1.3 million on $19.2 million in sales for 2003.
Shares of Synbiotics, traded on Pink Sheets under SBIO.PK, closed at 9 cents on April 19, up 3 cents.