VANCOUVER, Sept. 11, 2014 /CNW/ - JEMTEC Inc. (TSX-V: JTC) ("JEMTEC" or
the "Company") announces that the board of directors has approved the
payment of a one time special dividend of $0.59 per common share (the
"Special Dividend"). The special dividend will be payable to
shareholders of record as of the close of business on September 19,
2014 (the "Special Dividend Record Date"). The Special Dividend will be
done in accordance with the applicable "Due Bill" trading procedures of
the TSX Venture Exchange. The dividend will result in a distribution of
approximately $1,465,000 of the Company's cash.
The Special Dividend is payable on October 2, 2014, (the "Special
Dividend Payment Date") to shareholders of record on the Special
Dividend Record Date. JEMTEC's common shares will be traded in
accordance with the "Due Bill" procedures with respect to the Special
Dividend from September 17th, 2014 until the close of trading on the
Special Dividend Payment Date (the "Special Dividend Due Bill Basis
Period"). Any trades executed on the TSX Venture Exchange during the
Special Dividend Due Bills Basis Period will be identified to ensure
that purchasers of JEMTEC's common shares receive entitlement to the
Special Dividend whereby the sellers of JEMTEC's common shares during
this Special Dividend Due Bill Basis Period will also sell their
entitlement to the Special Dividend to the respective purchasers of
such common shares. JEMTEC's common shares will commence trading on an
"ex-dividend" basis without an attached "Due Bill" entitlement to the
Special Dividend from the opening of trading on October 3rd, 2014, the
next trading day after the Special Dividend Payment Date. The last day
for settlement of trades executed during the Special Dividend Due Bill
Basis Period will be October 6, 2014, which is the Special Dividend Due
Bill redemption date.
Shareholders do not need to take any further action. JEMTEC will send to registered shareholders a cheque representing the
Special Dividend and beneficial shareholders will have their brokerage
accounts automatically updated to reflect the Special Dividend.
The Company has decided to pay a special dividend at this time after
considering a number of factors including:
The Company is returning surplus cash to the shareholders that is not
needed to execute the Company's business plans.
The Company's share price has been trading at a substantial discount to
the book value per share for an extended period of time. It is hoped
that a special dividend will help increase investor returns.
Even after payment of the special dividend, the Company will continue to
have cash reserves of approximately $1.5 million, which will allow it
to continue to pursue acquisitions.
The Company's electronic monitoring business will continue to operate
which will provide continued cash flow for operations.
There are currently no plans for future dividends. The Board of
Directors continues to review its long-term cash requirements in view
of its investment strategies and its capital needs from time to time.
This news release contains forward-looking statements, which relate to
future events or future performance and reflect management's current
expectations and assumptions. Such forward-looking statements reflect
management's current beliefs and are based on assumptions made by and
information currently available to the Company. Investors are cautioned
that these forward looking statements are neither promises nor
guarantees, and are subject to risks and uncertainties that may cause
future results to differ materially from those expected. These
forward-looking statements are made as of the date hereof and, except
as required under applicable securities legislation, the Company does
not assume any obligation to update or revise them to reflect new
events or circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Jemtec Inc.
For further information:
Eric Caton, President
Phone (877) 929-4559
Fax (877) 929-4198