JCS - JCS STOCK NEWS

Communications Systems, Inc. (JCS) has scheduled a special meeting on March 16, 2022, to vote on the proposed merger with Pineapple Energy LLC. The merger aims to provide strategic growth opportunities in the consumer energy sector, focusing on solar, battery storage, and grid services. Shareholders may also receive dividends from legacy asset sales, with a potential $34 million special dividend announced previously. The merger is anticipated to enhance CSI's market position and is backed by promises of future acquisitions and a robust growth strategy.

Communications Systems (JCS) announced an amendment to its merger agreement with Pineapple Energy, extending the agreement's outside date to March 31, 2022. This includes new conditions requiring $32 million in cash from an equity offering and the waiver of $3 million in debt from Hercules Capital. Additionally, the company completed the sale of real estate in Hector, Minnesota, for $900,000, benefiting pre-merger shareholders. Lastly, shareholders received a $3.50 special cash dividend in 2021, treated as ordinary taxable income.

Communications Systems (JCS) announced a purchase agreement on November 18, 2021, with Buhl Investors LLC to sell its headquarters in Minnetonka, MN, for $6.8 million. The transaction is contingent upon the Buyer completing due diligence within 90 days and obtaining regulatory approval for a multi-tenant office use. Furthermore, CSI plans to distribute sale proceeds in the form of dividends or Contingent Value Rights (CVR) to shareholders, pending the closing of this sale and its merger with Pineapple Energy, aimed at expanding its solar and energy service operations.

Communications Systems, Inc. (NASDAQ: JCS) reported a net income of $8.6 million for Q3 2021, significantly up from $262,000 in Q3 2020, primarily due to a $13.5 million gain from the sale of its Electronics & Software segment to Lantronix (NASDAQ: LTRX). Revenues from continuing operations fell 45.5% to $1.8 million, impacted by the loss of a major educational customer. Recurring revenues increased by 74% to $1.5 million, reflecting successful acquisitions. The company paid a $3.50 special dividend totaling $34 million on October 15, 2021, from proceeds of the divestiture.

Communications Systems, Inc. (NASDAQ: JCS) announces its subsidiary, JDL Technologies, has achieved Microsoft Certified Partner Gold status for Cloud Platform solutions. This recognition places JDL in the top 1% of the Microsoft Partner Network, enhancing its capabilities to provide advanced IT services. The accolade reflects JDL’s expertise in Microsoft technologies, offering clients improved support and innovation. JDL Technologies also holds Silver competencies in Application Development and Small & Midmarket Cloud Solutions, highlighting its robust service offerings.

Communications Systems, Inc. (JCS) has amended its securities purchase agreement to secure a $32.0 million private placement with institutional investors, aimed at financing strategic initiatives post-merger with Pineapple Energy, LLC. This replaces a previous $25.0 million agreement and aligns with the closing of the merger. The new agreement enables PIPE investors to acquire 27% of the company's outstanding common stock at a conversion price of $3.40 per share. Shareholder approval is pending, with a deadline set for March 31, 2022.

Communications Systems, Inc. (NASDAQ: JCS) has declared a special dividend of $3.50 per share, payable on October 15, 2021, to shareholders of record by September 30, 2021. This totals approximately $34.0 million and will be funded from the sale proceeds of the Electronics & Software Segment to Lantronix, Inc. on August 2, 2021. The company aims to deliver higher returns through strategic monetization of its legacy assets.

Communications Systems, Inc. (NASDAQ: JCS) reported a 14% revenue increase in Q2 2021, totaling $11.0 million, and a 32% boost in gross profit, reaching $4.6 million. Gross margins improved to 41.9% from 36.1%. The company incurred a net loss of $1.9 million, or ($0.20) per diluted share, consistent with the previous year. Following the sale of its Electronics & Software segment, the firm intends to distribute a $3.50 per share cash dividend, aggregating approximately $35 million. CSI is also advancing its merger with Pineapple Energy, aimed at enhancing its position in solar and energy services.

Communications Systems, Inc. (NASDAQ: JCS) announced the completion of the sale of its Electronics & Software Segment to Lantronix, Inc. for a cash payment of $24.16 million, subject to adjustments. An additional $7.0 million may be earned through revenue milestones. Following the sale, CEO Anita Kumar stepped down, and Roger Lacey became the Interim CEO. The company is focusing on monetizing remaining assets, with a planned merger with Pineapple Energy, aiming for growth in the solar energy sector.