Castle Intends to Go Private
By
Metal Center News Staff on
Nov 11, 2020
Specialty metals distributor A.M. Castle, Oak Brook, Ill., intends to become a private company, based on a filing with the Security and Exchange Commission. The company’s board of directors determined the continued costs associated with remaining a publicly traded company could not be justified to the company and its shareholders at present.
To achieve its aim of having fewer than 300 record holders of the common stock, the company has planned a reverse stock split of its outstanding shares. In the sale, each 10 shares of common stock outstanding as of the reverse stock split date will be combined into one whole share of common stock.
As of Oct. 28, the company had more than 73 million shares of common stock issued.
The company has been trading on the OTCQX market since 2016. It previously traded on the NYSE before falling out of compliance with existing listing standards. Castle later completed a reorganization in 2017.
Castle remains North America’s 24th largest service center company, with 2019 sales of $559.6 million.