Former Acton company to delist its shares from NASDAQ
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SeaChange International is headquaretered at 177 Huntington Ave. in Boston.
Boston-based streaming technology company SeaChange International, which was formerly based in Acton, will voluntarily delist its stock from The NASDAQ Stock market.
In a Tuesday press release, the company cited as a reason for the delisting a dislocation between the market’s perception of SeaChange’s value and the company’s intrinsic value after exploring range of potential transactions to maximize stockholder value, including a possible sale, merger, divestiture, and recapitalization.
The delisting will be official on or about Aug. 28, according to SeaChange.
The company expects to save $3 million in costs related to accounting and reporting associated with being publicly traded. The money will be reinvested in products and services.
“Despite our best efforts and much improved financial and operational performance over the past two years, including new product development inside of the Connected TV tailwinds and growth in both revenue and EBITDA, the market capitalization of SeaChange remains significantly below our expectations,” Chairman and CEO Peter Aquino said in the press release. “In essence, the value of the company basically mirrors its cash balance alone, and attributes minimal value to the company’s operations. It is clear, in my opinion, that this perceived stagnation in our public stock price and lack of scale, which we aimed to fix through M&A, has made it extremely difficult to transact on a level playing field with private companies in our industry.”
SeaChange had a market capitalization of nearly $12 million as of Wednesday morning. Shares of the company were trading at around $4.60 on Wednesday morning, down from a 52-week high of $12.20. The company reported $32.5 million in revenue in fiscal 2023, ending in January.
The company had been headquartered in Maynard and Acton prior to moving its headquarters to Boston.
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