What is a liquidating dividend
If EMRISE can make another liquidation dividend distribution to its stockholders, it would be the final such distribution, the amount would be minimal and it would only be made upon completion of the dissolution of the Company, which is currently scheduled to occur in July 2018.In the future, EMRISE intends to only make public disclosures that are necessary to provide its stockholders with essential information about the status of the Plan.Sometimes, however, a dividend may be paid out of contributed capital instead.
At this time, EMRISE cannot determine if it can make another liquidation dividend distribution to its stockholders.
If made, the amount of any such distribution would depend on a variety of factors including the payment of State and Federal taxes and other costs and liabilities associated with the dissolution of the Company.
The interest period runs from the date of record to the date of payment.
As stated earlier, most dividends are paid out of retained earnings and are simply distributions to the stockholders of the corporate earnings.
The initial distribution was made as previously announced on November 16, 2015, and in connection with the Company’s previously announced voluntary Plan of Dissolution (the “Plan”) that was approved by its stockholders at a special meeting of stockholders held on June 25, 2015.