Image Sensing Systems, Inc. (NASDAQ: ISNS) rose Friday after the company announced it initiated a quarterly dividend of $0.12 per share, authorized a 220,000 share buyback and announced the implementation of a holding company reorganization.
Thursday, it was announced that The holding company will be named Autoscope Technologies Corporation, which is intended to highlight the Company’s most successful and enduring product while also creating a new roadmap for future value creation by signaling a new company strategy and structure. Autoscope Technologies Corporation will focus on high-return internal growth opportunities while seeking selective acquisitions which can leverage its existing assets and infrastructure.
Said CEO Andrew Berger, "Over the last five years, Image Sensing Systems has prudently rebuilt its balance sheet while significantly improving its bottom line profitability and cash flow. By reorganizing and building on the success of the Autoscope brand, we will work on growing the business with a focus on organic opportunities while also examining acquisitions and partnerships that can leverage the reputation, assets, and talents within the Company.
"We intend to transform the Company into a group of profitable business lines marketed to a diverse customer base that generates sustainably higher earnings."
Under the planned holding company reorganization, existing shares of Image Sensing Systems would be automatically converted on a one-for-one basis into shares of common stock of Autoscope Technologies Corporation. Shareholders would not need to return stock certificates or otherwise take any action with respect to their shares of Image Sensing Systems common stock.
It is anticipated that the holding company reorganization would be a tax-free transaction for U.S. federal income tax purposes for Image Sensing Systems and its shareholders.
ISNS shares rocketed $1.42, or 30.9%, to $6.03.
