HOUSTON--(BUSINESS WIRE)--KMG Chemicals, Inc. (NYSE: KMG), a global provider of specialty chemicals to select markets, today announced that it had entered into a settlement with the U.S. Securities and Exchange Commission concerning late filings of beneficial ownership changes by certain of the Company’s officers and directors. KMG’s settlement was part of an enforcement action undertaken by the SEC against numerous officers, directors, and public companies. KMG agreed to pay a civil penalty of $150,000, which the Company has already accrued for, and has taken appropriate steps to ensure ongoing compliance with filing deadlines.
During 2010-2013, one of KMG’s directors sold shares in more than 250 individual transactions over 30 months under publicly disclosed Rule 10b5-1 plans. A small percentage of those transactions were reported late by the Company on behalf of the director, usually by only a few days.
Christopher Fraser, KMG chairman and CEO, said, “While the SEC’s action related to only a small percentage of transactions that were not timely reported but were otherwise disclosed to investors, the Company nevertheless regrets that any filings were late. We understand the importance of reporting officer and director transactions to our shareholders and have revised our processes to more quickly complete our filings.”
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to select markets. The Company grows by acquiring and optimizing stable chemical product lines and businesses with established production processes. Its current operations are focused on the electronic and industrial wood treatment chemical markets. For more information, visit the Company's website at http://kmgchemicals.com.
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.