This company does not care to grow using the capital markets. The CEO and directors are small minded in keeping this company under 82% insider ownership.
They should make a tender offer of $3.50 a share and buy out the remaining 18% outstanding stock and take the company private.
Do they really think they can grow this company taking bank loans? Sure loans are cheap now but a big instititional sales costs nothing other than liquidating the stock. Exceleration of store expansion and factory expansion using "free" capital would provide for faster growth.
The management says it wants to grow by listing the company on AMEX but their actions show they are afraid to let go of some control. The dropping of AMEX fees by delisting would over the next several years go a long way to covering the cost of taking the company private. The existing investors would at least get a small profit for waiting on this investment to mature.
Even if they're not floating stock, having the ability to do so should they decide they want to, is still worth something. The only benefit to management in taking the company private might be the suspension of reporting requirements (which is a minor nuisance at worst). But they might not need to make a tender offer to accomplish that. There's such a small float that is possible they'd be in a position to go dark already if they wanted to. And even if they didn't have that ability (they need less than 300 shareholders), they wouldn't need to offer an 85% premium to the current price. They don't have far to go to achieve 90%.
Though I'll happily be proved wrong with a $3.50 tender.