This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

BackWeb Plans To Liquidate And Return Net Cash To Shareholders; Shareholder Approval Required To Proceed With Liquidation; Total Process Estimated To Take 6-12 Months After Approval

BackWeb Technologies Ltd. (OTC Pink: BWEBF) announced today that its Board of Directors has approved a plan to liquidate the Company and distribute all of its net cash to shareholders on a pro rata basis. The decision expands upon an earlier plan to distribute a substantial portion of the Company’s cash to shareholders and requires approval by shareholders (75% of all shares voted) as well as the satisfaction of legal and regulatory requirements. BackWeb also reported it has sold the remaining rights to its patent portfolio, thus ending its patent licensing activity. The Company also provided an unaudited balance sheet as of February 28, 2013 and posted its audited 2011 annual report on its website at http://www.backweb.com/news.

Net of all anticipated wind-down and liquidation expenses, BackWeb anticipates approximately $9.7 million to $10.2 million in net cash available for distribution among all common shareholders after the Company’s liquidation process is complete. BackWeb has approximately 41.8 million shares outstanding plus approximately 1.7 million options expected to be exercised in conjuction with the liquidation, which would result in an anticipated net cash available for distribution among all common shareholders of $0.22 to $0.23 per share.

As an Israeli corporation, BackWeb’s cash distributions upon liquidation may be subject to Israeli withholding tax at a rate of up to 30%. The Company intends to promptly file an application with the Israeli Tax Authority to request a ruling that certain types of shareholders be exempt from the withholding tax. There can be no assurance that such ruling will be granted. The Company expects to learn the results of the application within three months.

As of February 28, 2013, on an unaudited basis, BackWeb had cash and current assets of $11.6 million and total liabilities of approximately $0.65 million. Cash and current assets include net proceeds of approximately $0.6 million from the sale of the Company’s intellectual property/patent portfolio which closed in February 2013. Future expenses related to the wind-down of operations and liquidation are subject to some uncertainty, however management currently estimates that expenses including legal, accounting and operational costs, as well as proxy, special meeting and other shareholder communications costs, are anticipated to range from $0.7 million to $1.2 million.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs