Crossroads CapitalInc. has asked its shareholders to vote for a proposal to withdraw thecompany's election to be regulated as a business development company during thespecial meeting of shareholders.
The withdrawal will reduce the significant operating expensesrequired to comply with BDC regulatory requirements, and the savings can be usedto pursue the sale of the company's assets and return more capital to stockholdersin the form of cash, the company said.
The company also urged shareholders to vote for the proposalto approve any adjournments of the special meeting to provide it time to voluntarilydelist from Nasdaq and to allow it to solicit additional proxies if there are insufficientvotes at the meeting to approve the other proposals.
Crossroads Capital also asked its shareholders to vote in favorof the proposal to convert the company into a liquidating trust to liquidate anddistribute the company's assets. The company said complete liquidation of its portfolioassets is the best way to monetize its current holdings and maximize shareholdervalue in accordance with its investmentobjective.
The board will not withdraw the company's election to be treatedas a BDC if the proposal to convert the company into a liquidating trust is notapproved, because of the adverse tax consequences associated with withdrawal withoutconverting into a liquidation trust.