VANCOUVER, Jan. 8, 2020 /CNW/ - JEMTEC Inc. (TSX-V: JTC) ("JEMTEC" or the "Company") announces that the board of directors has declared the payment of a one time cash dividend of $0.25 per common share (the "Special Dividend"). The Special Dividend will be payable to shareholders of record as of the close of business on January 17, 2020 (the "Special Dividend Record Date"). The Special Dividend will result in a distribution of approximately $679,219 of the Company's cash.
The Special Dividend is payable on January 31, 2020 (the "Special Dividend Payment Date") to shareholders of record on the Special Dividend Record Date. JEMTEC's common shares will trade ex-dividend commencing on January 16, 2020 until the close of trading on the Special Dividend Payment Date. Persons who purchase JEMTEC common shares on or before January 15, 2020 will be entitled to the Special Dividend. Purchasers on or after January 16, 2020 will not be entitled to the Special Dividend.
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 the Special Dividend at this time after considering a number of factors including:
- The directors feel that a portion of the Company's cash reserves should be returned to the Company's shareholders as these funds are not needed to execute the Company's business plans.
- The Company's directors believe the Company's share price is undervalued and it is hoped that the Special Dividend will help increase investor returns.
- Even after payment of the Special Dividend, the Company will have cash reserves of approximately $1.7 million which will allow it to continue to pursue acquisitions.
- The Company's electronic monitoring business will continue to operate which will provide cash flow for ongoing 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, www.jemtec.ca