MIND CTI Skyrocket on Big Dividend after ARS settlement
September 10, 2009 11:31 AM
Shares of MIND C.T.I. Ltd. (NASDAQ: MNDO) surged as much as 52.38% to $1.54 after making a new 52- week high at $1.77 during the mid morning trading session. Today, the company notified the Tel Aviv Stock Exchange (TASE) and the US Securities and Exchange Commission (SEC) that it has settled the arbitration claim over its ARS and will also distribute a dividend.
The company said that it will report, in the third quarter of 2009, a "material increase in financial income resulting mainly from $18.5 million cash settlement" from its arbitration claim. It added that the money will "significantly strengthen" its cash reserves, which totaled $11.8 million at the end of June.
Mind CTI also announced that its board of directors authorized the necessary steps, including applying for the requisite court approval, to enable the distribution of a $15 million dividend. It noted that, under Israeli law, a company with insufficient retained earnings is required to obtain approval from the court for such a distribution, but said that it expected to obtain this approval within three months. The dividend amounts to $0.80 per share, compared with yesterday's closing price on Nasdaq of $1.01.
