Pivot Technology Solutions (
TSX: V.PTG,
Stock Forum) pleased investors today when the company announced that it had initiated a conversion of its outstanding Series A Preferred Shares into common shares resulting in the company, after conversion, carrying a total of 167.8 million common shares both issued and outstanding.
According to the
news release, written notice of the conversion is being sent to all holders of Series A Preferred Shares stating that the transfer agent shall issue one common share for each Series A Preferred Share to the bearer of record. After which, all certificates for said converted Series A Preferred Shares will be null and void.
The company also announced that the board of directors has approved a normal course issuer bid (“NCIB”), which will enable the company to purchase the greater of up to 5% of the issued and outstanding shares of the company or up to 10% of its public float, calculated according to TSX regulations, after the conversion of the aforementioned Series A Preferred Shares.
The NCIB is still subject to the filing of formal notice and the approval of the TSX Venture Exchange.
Upon approval of the preferred share conversion and the adoption of the NCIB, the board has also approved the implementation of a CAD$0.03 per share annual dividend to be paid out quarterly. The company expects the initial dividend payment to be CAD$0.0075 per share at the time of the publication of financial results for Q2 2015, with payment in September 2015. The record date will be confirmed for the initial dividend payment in a subsequent release.
Company CEO, Warren Barnes, commented on the changes, “Following a lengthy and thorough review of options regarding the company's capital structure, the Board has determined that a conversion of the Series A Preferred Shares into common shares is in the best interests of all shareholders and the Company. We are pleased to bring this process to a conclusion and to move forward with a simplified capital structure.”
He went on, “Additionally, the Board believes the Company is now in a position to adopt certain policies that will make a positive contribution towards creating shareholder value. Specifically, I am referring to the adoption of the NCIB and the quarterly dividend.”
Pivot Technology Solutions was in the news recently when
the Carlsbad, California-based company announced four days ago the departure of Ted Glahn from New ProSys Corp, a Pivot company.
Shares gained 50.00% on the news to $0.315 per share.
Currently there are 107.6m outstanding shares with a market cap of $33.9 million.