ClearOne, Inc. clarified details regarding its previously announced one-time special stock dividend, stating that the Nasdaq Stock Market, LLC advised that an EX date would not be issued for the Common Stock. This means that only stockholders of record as of the close of business on the record date of July 11, 2025, will receive the Special Stock Dividend. Any shares of Common Stock purchased after this record date will not be eligible for the dividend.
The decision by Nasdaq stems from the fact that the Class A Preferred Stock, which constitutes the dividend, will be restricted securities and not transferable. This non-transferability impacts the standard trading practices around dividend distributions. The Special Stock Dividend is payable on July 18, 2025, to eligible stockholders.
The dividend involves issuing one share of Class A Redeemable Preferred Stock for every issued and outstanding share of Common Stock and Common Stock Equivalent. This preferred stock is redeemable for 100% of the net proceeds from any eventual sale of all or substantially all of the company’s current assets and operations. This clarification provides important information for investors regarding the mechanics of receiving the dividend.
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