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Straight Path Communications Inc. (SPCI) today announced that its spin-off from IDT Corporation (NYSE: IDT) has been successfully completed following the distribution of SPCI common stock to IDT stockholders. SPCI Class B Common Stock will begin trading regular way today on the NYSE MKT with the ticker symbol “STRP”. To mark the occasion, Straight Path’s President & Chief Executive Officer, David Jonas, will ring the closing bell on the New York Stock Exchange today at 4 PM Eastern.
Holders of IDT Class A and Class B common stock as of the record date, July 25, 2013, were issued one share of SPCI Class A and Class B common stock, respectively, for every two shares of IDT stock. 787,163 shares of SPCI Class A and 10,693,210 shares of Class B common stock were distributed at 11:59 p.m. yesterday.
SPCI’s President & Chief Executive Officer, David Jonas, said, “The spin-off of Straight Path Communications is an important milestone in our efforts to realize the full potential of our spectrum holdings and intellectual property.”
“Our spectrum licenses, originally purchased from Winstar Communications, cover virtually the entire United States and offer a superior wireless backhaul solution. They are a cost effective alternative to fiber optic cables for data transport within telecom and Internet networks. Our intellectual property, which was central to Net2Phone’s success as an early leader in the VoIP industry, is being directly infringed by communications services and by the electronic manufacturers that pre-install these services on their equipment,” Jonas added.
“As a company that was nurtured within IDT—as were Net2Phone, Genie Energy, and IDT Entertainment — Straight Path brings a profound appreciation for innovation and the development of assets to maximize value for our shareholders,” Jonas concluded.
“In addition to our spectrum license and intellectual property holdings, SPCI was spun off with $15 million in cash. We intend to keep operating expenses to a minimum, and closely control capital investment to ensure that our cash is sufficient to support our operations for some time. We will seek to balance expenditures while actively monetizing our assets to allow investors to realize the upside potential of our businesses,” said Jonathan Rand, SPCI’s Chief Financial Officer.