TSX-V: JTC
VANCOUVER, BC, Dec. 22, 2020 /CNW/ - JEMTEC Inc. (TSXV:
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 6, 2021 (the "Special Dividend Record
Date"). The Special Dividend will result in a distribution of
approximately $693,670 of the
Company's cash.
The Special Dividend is payable on February 10, 2021 (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 5, 2021 until
the close of trading on the Special Dividend Payment Date. Persons
who purchase JEMTEC common shares before January 5, 2021 will be entitled to the Special
Dividend. Purchasers on or after January 5,
2021 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 a 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 a special dividend will help
increase investor returns.
- Even after payment of the Special Dividend, the Company will
have cash reserves of approximately $1.45
million which will allow it to continue to pursue
acquisitions and expand its existing operations.
- 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.
FORWARD-LOOKING STATEMENTS
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.