MIAMI, FL, May 27, 2016 /CNW/ - Next Group Holdings, Inc. (OTCQB: NXGH) (the "Company") today announces a special dividend for shareholders. The Company has completed and filed requisite paperwork to issue a special dividend of one share of the new Class D Redeemable Preferred Stock for each share of NXGH common stock held. To receive the special dividend, NXGH shareholder need only to take the appropriate steps with their brokerage house to verify their position in the Company.
Next Group Holdings will redeem the Class D Redeemable Preferred shares from each shareholder subsequent to a court ruling in the litigation with Viber Media, Inc. ("Viber"). On May 12, 2016, our Board of Directors created a new class of Preferred Stock. The Board also declared a special stock dividend consisting of our newly designated Class D Redeemable Preferred Stock. Pursuant to the dividend, the special stock dividend will be distributed to owners of the Company's common stock as of the record date in a ratio of one share of Class D Redeemable Preferred Stock for every 1 share of common stock owned as of the record date. The Company has set the record date as June 10, 2016. The Class D Preferred Stock must be redeemed within six (6) months (or as soon thereafter as permitted by law) following final resolution of the Corporation's affiliates lawsuit against ViberMedia, Inc. (Next Communications, Inc. and NxtGn, Inc. v. Viber Media, Inc.) which is, as of the date of this resolution, pending in U.S. District Court for the Southern District of New York or any successor or other lawsuit relating to the subject matter thereof in which the Corporation (or any successor-in-interest) is named as a plaintiff (the "Lawsuit").
The Designation fixes the redemption price of each share of class D Preferred stock as the greater of par value or the amount obtained by dividing (a) 9.03 percent of the net proceeds to the Corporation of the Lawsuit after payment of fees and expenses incurred in connection with such law suit and the resolution of any creditor claims against Next Communications and all taxes on net income accrued or paid with respect to such amount, by (b) the total number of shares of Class D Preferred stock issued and outstanding as of the Redemption Date, which amount shall be rounded to the nearest whole cent. In the event of an unfavorable result, we will still redeem the Class D preferred stock at par within six months of the case's final disposition.
"This new dividend demonstrates the optimism we have about our future and our unwavering commitment to deliver value to our loyal shareholders," said Arik Maimon, NXGH's Chairman and CEO. "I want to personally thank each investor and encourage everyone to verify their position in NXGH with their broker immediately to receive their dividend."
Next Group Holdings has provided the stockholder letter necessary to request the Class D preferred stock certificate from the Company free of charge at www.nextgroupholdings.com under "Investors Relations" in the main menu and "Dividend" tab.
The complete 8-K regarding the dividend and new class of share filed with the Securities and Exchange Commission is available at: http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11397857.
About Us: NXGH is a corporation headquartered in Miami, Florida, which, through its operating subsidiaries, engages in the business of using proprietary technology and certain licensed technology to provide innovative mobile banking, mobility, and telecommunications solutions to underserved, unbanked, and emerging markets. NXGH's principal executive offices are located at 1111 Brickell Avenue, Suite 2200, Miami, Florida 33131, and its telephone number at that location is (800) 611-3622.
NXGH's web address is nextgroupholdings.com.
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SOURCE Next Group Holdings, Inc.
For further information: NEXT Group Holdings, Inc. (OTCQB: NXGH), Telephone: 1-800-611-3622, [email protected]