SMG Industries Inc. Announces Voluntary SEC Deregistration

HOUSTON, TX, March 08, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire – SMG Industries Inc. (“SMG” or the “Company”) (OTCQB: SMGI), a growth-oriented transportation services company specializing in the full-service logistics market, today announced its strategic decision to voluntarily deregister its common stock under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

SMG’s management believes that “going dark” is a prudent step aligned with the Company’s short-term planning and long-term vision. By eliminating the Company’s Exchange Act reporting obligations, SMG aims to streamline its financial operations, reporting obligations, reducing administrative costs, and allowing the business to focus on core business activities.  The Company believes this decision will allow the back office to operate more efficiently and allocate resources more effectively. With a more streamlined cost profile, SMG’s management will be better able to invest in its business and mitigate excessive costs around public reporting requirements, thus providing a future benefit to the Company’s stockholders.

On or about March 15, 2024, the Company intends to file a Form 15 with the Securities and Exchange Commission (the “SEC”) to voluntarily effect the deregistration of its common stock. The Company is eligible to deregister by filing a Form 15 because it has fewer than 300 holders of record of its common stock. Upon the filing of the Form 15, the Company’s obligation to file certain reports with the SEC, including Forms 10-K, 10-Q and 8-K, will immediately be suspended. The Company expects the deregistration to become effective 90 days after filing the Form 15 with the SEC.

“We remain committed to delivering value to our stockholders. Going dark allows us to focus on the operations of the business and reduce costs by an estimated $1,000,000 per year. Currently, we do not believe we are receiving meaningful benefits from being a public reporting company. We appreciate the continuing support of our stockholders and look forward to achieving our long-term vision including this short term plan,” stated Tim Barnhart, CFO.

As a result of this decision, the Company’s common stock will be moved from the OTCQB to the Expert Market of the OTC Markets Group.  The board of directors of SMG considered the fact that the Company’s common stock would become more illiquid as a result of this decision and that stockholders may experience difficulties in selling their shares of common stock.  The decision to proceed, however, took into consideration the current as well as potential future costs of remaining a reporting company versus the benefits to the longer-term health and future of the Company.