Spectrum Group International Inc. said it plans to delist its shares from national securities exchanges and spin off a subsidiary.
The Irvine-based trader of precious metal products and an auctioneer of coins and wine filed a statement with the Securities and Exchange Commission announcing its plans to distribute outstanding shares of common stock of A-Mark Precious Metals Inc., a precious metals trading company based in Santa Monica.
“We expect that the spinoff will provide significant benefits to the shareholders, employees and customers of both companies by enabling management of each company to explore growth opportunities and execute strategic business plans best suited to their respective businesses,” Greg Roberts, Spectrum’s president and chief executive, said in a news release.
Expectations
“In addition, we expect that the spinoff will increase investor understanding of A-Mark and its market position within its industry, and allow investors to make independent decisions with respect to each of SGI and A-Mark based on their different business models, strategies and industries.”
The spinoff will also allow the management of each company to tailor compensation structures that reflect the company’s strategies, policies and business characteristics, according to the SEC filings. For A-Mark, separate equity-based compensation arrangements “should more closely align the interests of management with the interests of the shareholders.”
Spectrum shares are listed on the lightly traded Pink Sheets. It is among the largest publicly traded companies based in Orange County in terms of revenue, with about $7.4 billion in annual sales for the fiscal year that ended June 30. It had about $3.3 million in profit for the period.
—Mediha DiMartino
