Business
Tix Corporation Suspends Dividend on Common Stock
Tix Corporation Suspends Dividend on Common Stock.
About this update from Tix Corporation
[{"type":"text","content":"\n\n STUDIO CITY, Calif., July 06, 2017 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company” or “we”) (OTCQX:TIXC), a leading provider of discount ticketing services, today announced its Board of Directors (the “Board”) has voted to suspend the quarterly dividend on the Company’s common stock due to the continued difficult operating environment in Las Vegas and to preserve capital.    \n Under the terms of the Stockholder Rights Agreement, as summarized below, the Board also approved the request by Mitch Francis, the CEO of the Company, to purchase up to two million shares of the Company’s common stock at such times and at such prices that Mr. Francis may determine in his discretion. Stockholder Rights Agreement As a reminder to our existing and future stockholders, on January 2, 2014, the Company announced that the Board adopted an amendment of the Company's Stockholder Rights Agreement (the “Rights Agreement”) to protect the interests of all Company stockholders by lowering the beneficial ownership threshold to a level that could help preserve the value of the NOLs.  The Company’s ability to use the NOLs would be substantially limited if there were an “ownership change” as defined under Section 382 of the U.S. Internal Revenue Code and related U.S. Treasury regulations (“Section 382”). In general, an “ownership change” would occur under Section 382 if the Company’s “5-percent shareholders,” as defined under Section 382, collectively increase their ownership in the Company by more than 50 percentage points over a rolling three-year period. Under the terms of the amended and restated Rights Agreement, subject to certain exceptions, in the event a person or group, without Board approval, acquires beneficial ownership of 4.95% or more of the outstanding Common Stock or announces a tender or exchange offer which would result in such person or group's beneficial ownership of 4.95% or more of the outstanding Common Stock (a “Triggering Stockholder”), then all stockholders of the Company (other than the Triggering Stockholder) will be entitled to acquire shares of Common Stock at a 50% discount (a “Dilution Event”).    A person or group that owns 4.95% or more of th...