Enfield’s STR Holdings, once a rising star in Connecticut’s solar industry until it ran into troubles three years after it went public, announced that it will no longer publicly disclose financial results and begin trading on the pink sheets, a move the company says will cut costs as it fights for survival.
STR, which develops specialty film “encapsulants” that hold together solar panel modules, said the move, which is referred to as “going dark,” is aimed at reducing costs and giving the company increased flexibility as it reviews its business and strategic plans.
However, the move could lower the company’s trading volume.
STR went public in 2009, raising $123 million and landing on the New York Stock Exchange. Its annual sales in 2010 were $259 million, with $49 million in profit.
In 2018, the company lost $5.8 million on sales of $10.9 million.
STR’s slide began around 2012, amid a global drop in solar prices and the subsequent loss of its largest customer.
The company laid off a third of its workforce in 2013.
STR was delisted from the NYSE in 2015, and its shares have been quoted on the OTC Markets exchange since then.
Most recently its stock was quoted on the “OTCQB” tier, a middle marketplace that, while over the counter, still requires companies to report to the SEC.
Now, STR’s stock will fall to the lowest tier, OTC Pink, which is viewed as the riskiest because there are no reporting requirements.
STR qualifies for voluntary deregistration because it has fewer than 300 shareholders, according to its deregistration filing.
In December, STR sold its dormant Malaysian facility for $5.4 million, giving it enough cash to operate through at least the end of this year, according to other recent SEC filings.