Margo's board of directors unanimously decided to take this action because it believes that the burdens associated with operating as a registered public company currently outweigh any advantages to the company and its stockholders. In particular, the board of directors considered:
-- The costs, both direct and indirect, incurred by Margo in connection with preparing and filing periodic reports with the SEC and otherwise complying with the obligations of being a public company;
-- The benefits of permitting senior management to spend less time on report preparation and regulatory compliance, which will allow them to devote their attention and efforts to Margo's operations; and
-- The historically low trading volume of Margo's common stock.
Margo expects, but cannot guarantee, that its common stock will continue to be quoted on the Pink Sheets after it deregisters. There can also be no assurance that any brokerage firms will continue to make a market in the common stock after the deregistering. The Pink Sheets is a provider of pricing and financial information for the over-the-counter securities markets. It is a centralized quotation service that collects and publishes market maker quotes in real time primarily through its website, www.pinksheets.com, which provides stock and bond price quotes, financial news, and information about securities.
About Margo Caribe
Margo Caribe, Inc. is principally engaged in the manufacturing and
distribution of its own line of planting media and aggregates (including bark
and premium mulch manufacturing and sale). Margo is also engaged in the
distribution of lawn and garden products in
103295.2 CONTACT: Michael J. Spector Telephone: (787) 883-2570 Ext. 1055
SOURCE Margo Caribe, Inc.