LICT Corporation (the “Corporation”; OTC Pink®: LICT) is announcing that its Board of Directors (the “Board”) has initiated a strategic review to accelerate and broaden the development of the Corporation’s businesses. At a special meeting held on April 23, 2021, the Board directed the consideration and analysis of a full range of measures to unlock current and enhance and surface shareholder value.
The actions to be explored will include, among others, the possible creation of a Special Purpose Acquisition Corporation (“SPAC”); the spin-off of one or more of the Corporation’s subsidiaries as a separate entity; potential strategic and accretive acquisitions in the Corporation’s current or adjacent industries; and the possibility of raising long term debt.
A SPAC gives the Corporation flexibility to seek out and fund transactions in its existing or related businesses or expand into new areas.
In addition, Shareholders have benefited through spin-offs. CIBL, Inc., spun off in 2007, initially traded beginning in 2008 at around $200 per share; it has recently traded as high as $1,800 per share. Likewise, ICTC Group, Inc., spun off in 2010, initially traded at around $15 per share and was acquired in 2018 for $65 per share. Indeed, LICT was itself a spin-off from Lynch Corporation and started at $2,500 per share. LICT is analyzing its current portfolio of companies to determine whether our shareholders might benefit from another such spin-off.
In sum, at the Board’s affirmative direction, the Corporation will systematically seek, analyze, and evaluate a full range of means to expand the scope and scale of its businesses, to accelerate growth across all of them, and thereby to enhance and surface our shareholders’ value.
This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com . As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.
LICT Corporation is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business areas.
LICT Corporation is listed on the OTC Pink ® under the symbol LICT. For further information visit our website at http://www.lictcorp.com .
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Mario J. Gabelli
Executive Chairman and
Chief Executive Officer
Stephen J. Moore
Vice President-Finance
914-921-8821
www.lictcorp.com