US-based dairy-free firm Tofutti Brands has started a review of its strategic alternatives that include operating as a standalone or a possible sale or forming a new business combination.
For the review, the company has retained BDA Advisers as its financial advisor and Carter Ledyard & Milburn LLP as its legal advisor.
However, Tofutti said that it has not made any decision to enter into any transaction.
It also said there is no guarantee that the review will lead to any transaction.
Tofutti said: “There is no set timetable with respect to the Board's review, and the Company does not expect to make further public comment regarding these matters unless and until the Board approves a specific action or otherwise concludes its review.”
The firm also plans to delist its common shares from the stock market by filing Form 25 with the US Securities and Exchange Commission.
It expects the delisting to become effective nearly 10 days after filing the form with the regulator.
The company said: “Recently, the Board of Directors unanimously approved a resolution authorizing the Company to voluntarily delist from the NYSE MKT.
“Material facts related to this important decision include the inability of the company to regain compliance with the continued listing requirements of the NYSE MKT Company Guide within the relevant compliance period.”
Founded in 1981, Tofutti develops and distributes a wide range of dairy-free products. It sells frozen desserts, cheese products and prepared frozen dishes throughout the United States and in more than 30 countries.
Tofutti reported 2% decline in its net sales to $3,554,000 for the thirteen weeks ended July 2, 2016 on year-over-year basis.
As of July 2, 2016, it held approximately $185,000 in cash and cash equivalents.