Insignia Systems, Inc. (NASDAQ: ISIG) announced on February 23, 2011 that its Board had approved payment to the shareholders of a special dividend of $2.00 per share, to shareholders of record on April 1, 2011, with the payment date to be May 2, 2011. Pursuant to NASDAQ rules, the ex-dividend date is May 3, 2011.
All persons who own the stock on May 2, 2011, will receive the $2.00 special dividend regardless of whether or not they held the stock on the record date (April 1, 2011). The reason for this is the special rules applicable to dividends that are more than 25% of the market price of the stock. The only importance of the April 1, 2011, record date is that if the Company were to issue additional shares after April 1 st, the additional shares would not be eligible for the special dividend. However, the Company has determined not to issue any additional shares, including pursuant to stock options after April 1, 2011. For this reason, all outstanding shares will be eligible for the special dividend and it will be paid to the shareholders who own the stock on May 2, 2011. The Company expects that the stock will continue normal trading between April 1 and May 2, 2011.
Insignia Systems, Inc. is an innovative developer and marketer of in-store advertising products, programs and services to retailers and consumer goods manufacturers. Through its Point-Of-Purchase Services (POPS) business, Insignia is contracted with 9,600 chain retail supermarkets and drug stores. Through the nationwide POPS network, over 200 major consumer goods manufacturers, including General Mills, Kellogg Company, Kraft, Nestlé, Ocean Spray, Reckitt Benckiser, Schwan’s Bakery and Tyson Foods, have taken their brand messages to the point-of-purchase. For additional information, contact (888) 474-7677, or visit the Insignia website at www.insigniasystems.com.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements. The Company’s actual results could differ materially from these forward-looking statements as a result of a number of factors, including risks and uncertainties as described in the Company’s SEC Form 10-K for the year ended December 31, 2010, and other recent filings with the Securities and Exchange Commission. The Company wishes to caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made.