In last trading session, the stock price of Swisher Hygiene Inc (OTCMKTS:SWSH) traded in a narrow range and closed flat at $0.950. The traded share volume stood at 52,322 compared to average share volume of 38,574.
The news
Last week, Swisher Hygiene announced that its Board of Directors approved the submission of a Certificate of Dissolution on May 27(the “Final Record Date”). The submission of the Certificate will be pursuant to a Plan of Dissolution accepted by stockholders at the annual meeting held in last October. Swisher Hygiene has notified OTCQB marketplace that the Certificate will be submitted on the Final Record Date and after that, SWSH shares will halt to be traded on OTCQB platform.
Subsequent to the Final Record Date, the company will close its stock transfer books and transfers of the shares will no longer be registered. The company plans to seek relief from the SEC to suspend a part of its reporting obligations as per the “Securities Exchange Act of 1934”. If the company gets the approval, Swisher Hygiene plans to release any further material events pertaining to the dissolution and liquidation on Form 8-K.
The takeaway
Swisher Hygiene used to function in two segments: Waste and Hygiene. The Waste division and the Hygiene division was sold on November 2012 and November 2015, respectively. Following the sale deal of the Hygiene division, the company reported no operating assets and no revenue generating operations or business. In last Annual Meeting 2015, the company’s shareholders gave their nod for a Plan of Dissolution and Liquidation.
On approval of the Plan of Dissolution, the shareholders may receive around $1.02 per share. At last close of $.95 investors can receive more than 13% return on investment. This analysis is based considering that liquidation will be closed by December 2016, and accounts receivable and cash will be fully valued.
