US dairy-free business Tofutti Brands has appointed advisers to look at “strategic alternatives” for the business, including a possible sale.
Tofutti said today (30 September) its board had started the review, which it said “may result in the company’s continuing to pursue value-enhancing initiatives as a standalone company or a possible sale or other form of business combination”.
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By GlobalDataThe company added: “No decision has been made to enter into any transaction at this time, and there can be no assurance that the consideration of strategic alternatives will result in any transaction.”
Tofutti also announced its board had decided to delist from the NYSE MKT exchange. The business said “material facts related to this important decision include the inability of the company to regain compliance” with the exchange’s listing requirements.
In April last year, Tofutti announced the NYSE MKT had written to the company to say it was not meeting listing requirements in part because it had generated net losses in three of its last four financial years. That June, Tofutti said the NYSE MKT had given the business until 1 October this year to regain compliance.
Tofutti said today it expects to file its notification of delisting from the NYSE MKT on 11 October. The company expects the delisting to be effective around ten days after the notification. Upon delisting, Tofutti intends for its common stock to trade on the OTCQB Venture Market.
In 2015, Tofutti posted sales of US$13.8m, down from $14.4m in the prior year. Tofutti booked a net loss of $643,000 ($0.12 per share) compared to a net loss of $163,000 ($0.03 per share) in fiscal 2014.