Aware declares special cash dividend totalling $40 Million
Aware announced its board of directors has declared a special cash dividend of $1.75 per share, which amounts to a total of about $40 million.
The amount will be paid on July 24th to Aware shareholders of record as of July 10, 2014.
The announcement comes on the heels of Aware’s stock being upgraded by TheStreet Ratings from hold to buy, as previously reported by BiometricUpdate.com.
Aware’s board of directors says the company’s current cash balances are greater than its capital requirements and, as a result, will return cash to Aware shareholders.
According to the press release, the “federal income tax treatment of the special cash dividend will depend on the amount of the company’s current and accumulated earnings and profits as of December 31, 2014, as determined by the Internal Revenue Code.”
The company says that about 10% of the special cash dividend will serve as a dividend, with the remaining 90% acting as a return of capital and/or capital gain. Aware will subsequently alert its shareholders in early 2015 as to the actual value of each of these.
Aware provides a range of biometrics software products and development, including SDKs, software components, workstation applications, and a service-oriented platform.