Interlink Electronics Announces 50% Common Stock Dividend

Rhea-AI Summary

Interlink Electronics, Inc. (Nasdaq: LINK) announced a 50% common stock dividend to be issued on March 22, 2024, affecting all stockholders uniformly. The dividend will not change the percentage interest in the company's equity, except for fractional shares. All convertible securities will be adjusted accordingly. The total outstanding shares will increase to around 9.86 million after the dividend.

Insights

Financial Analyst

The announcement of a 50% common stock dividend by Interlink Electronics represents a significant return of capital to shareholders, which can be interpreted as a strong signal of confidence by the company's management in its financial health and future prospects. With the stock dividend, the outstanding shares will increase, diluting the share value but not altering the ownership percentage. This could potentially lead to short-term volatility as the market assimilates the new share structure.

From a financial perspective, the adjustment of convertible and exercisable securities is a standard procedure to maintain the economic interests of the securities holders post-dividend. This ensures that the value and potential conversion or exercise of these instruments remain fair and proportional to pre-dividend terms. Investors should note that the increase in share count could affect earnings per share metrics, which is a critical factor for valuation.

Market Research Analyst

The market's reaction to such a stock dividend will depend on the perceived reasons behind it. If the market views this action as a method for the company to conserve cash while still rewarding investors, it might be received positively. However, if investors interpret it as the company having fewer attractive investment opportunities, it might lead to a less favorable view.

Furthermore, the issuance of an additional share in lieu of fractional shares is a shareholder-friendly move, eliminating the need for cash payouts for fractional entitlements and simplifying the process. This decision could enhance the company's reputation for shareholder consideration. It is essential for investors to monitor the stock's performance post-dividend issuance to gauge market sentiment and the long-term impact on the company's market capitalization.

IRVINE, Calif., March 1, 2024 /PRNewswire/ -- Interlink Electronics, Inc. (Nasdaq: LINK) (the "Company"), a world-leading provider of sensors and printed electronic solutions that support a wide range of applications, including Human-Machine Interface ("HMI") devices and IoT solutions, today announced that it will issue a 50% common stock dividend on March 22, 2024 to its stockholders of record as of March 11, 2024 (the "Stock Dividend").

The Stock Dividend will affect all stockholders uniformly and will not alter any stockholder's percentage interest in the Company's equity, except to the extent that the Stock Dividend results in a stockholder owning a fractional share. No fractional shares will be issued in connection with the Stock Dividend. Rather, stockholders who would otherwise be entitled to receive a fractional share instead will become entitled to receive one (1) share in lieu thereof.

All convertible and exercisable securities of the Company outstanding immediately prior to the Stock Dividend will be appropriately adjusted by multiplying the number of shares of common stock into which the convertible or exercisable securities are convertible or exercisable by 1.5 and dividing the conversion or exercise price thereof by 1.5.

Upon completion of the dividend, the outstanding shares of Interlink's common stock will increase to approximately 9,860,355, based on the number of shares outstanding as of March 11, 2024.

Stockholders with shares in brokerage accounts should direct any questions concerning the Stock Dividend to their broker; all other stockholders may direct questions to the Company's transfer agent, Computershare, at (800) 962-4284.

About Interlink Electronics, Inc.

Interlink Electronics is a world-leading provider of sensors and printed electronic solutions that support a wide range of applications, including Human-Machine Interface ("HMI") devices and IoT solutions, utilizing our expertise in materials science, manufacturing, firmware and software to produce in-house system solutions for custom specifications. We have a proven track record of supplying mission-critical technological solutions in diverse markets including medical devices, automotive, gas detection and environmental quality monitoring, oil and gas and general industrial, and consumer electronics, providing standard and custom-designed sensors that provide the flexibility and functionality needed for today's sophisticated applications.

The Company's products and solutions currently focus on three main fields:

• For nearly 40 years, the Company has led the printed electronics industry in commercializing its patented Force Sensing Resistor® technology, which offers pressure and position sensing and rugged capabilities in a very wide range of temperatures. Our piezoelectric film sensors offer strain, bend and vibration sensing and can be used on curved surfaces, while our advanced matrix sensor solutions offer multiple touch capabilities. We supply some of the world's top electronics manufacturers with intuitive sensor and interface technologies for use in advanced applications such as medical robotics and vehicle collision detection.
• Our Gas and Environmental Sensors division has over 25 years of experience in cutting-edge design and manufacture of electrochemical gas-sensing technology for industry, community, health and home. We provide advanced sensor solutions, precision sensing instruments, and custom engineering services for detecting gases such as carbon monoxide, ozone, hydrogen, NOX gases and ammonia, for transdermal alcohol detection and for air quality monitoring. Our innovative printed sensor design enables high-sensitivity, low-power and cost-effective solutions for broad adoption in the rapidly growing IOT market.
• Our Calman Technology subsidiary brings over 25 years of experience in the design and manufacture of membrane keypads, graphic overlays and industrial label products. We offer IP-rated digital and hybrid printed devices featuring integrated backlighting and shielding and printed electronics with advanced materials ink printing. Calman has customers in fields such as medical devices and defense technologies and gives the Company a base in Europe.

We serve our international customer base from our corporate headquarters in Irvine, California; our Global Product Development and Materials Science Center and distribution and logistics center in Camarillo, California; our advanced printed-electronics manufacturing facilities in Shenzhen, China, and Irvine, Scotland; and our proprietary gas-sensor production and product development facility in Newark, California.

For more information, please visit InterlinkElectronics.com.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements in this press release include statements about our products, operations and the markets we serve. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the company's industry, R&D initiatives, competition and capital requirements. Other factors and uncertainties that could affect the company's forward-looking statements include, among other things, the following: our success in predicting new markets and the acceptance of our new products; efficient management of our infrastructure; the pace of technological developments and industry standards evolution and their effect on our target product and market choices; the effect of outsourcing technology development; changes in the ordering patterns of our customers; a decrease in the quality and/or reliability of our products; protection of our proprietary intellectual property; competition by alternative sophisticated as well as generic products; continued availability of raw materials for our products at competitive prices; disruptions in our manufacturing facilities; risks of international sales and operations including fluctuations in exchange rates; compliance with regulatory requirements applicable to our manufacturing operations; and customer concentrations. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q) filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Interlink Electronics, Inc.
IR@iefsr.com
Steven N. Bronson, CEO
805-623-4184

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SOURCE Interlink Electronics

FAQ

What did Interlink Electronics announce regarding its stock dividend?

Interlink Electronics announced a 50% common stock dividend to be issued on March 22, 2024.

When will the stock dividend be issued?

The stock dividend will be issued on March 22, 2024.

How will the stock dividend affect stockholders?

The stock dividend will affect all stockholders uniformly and will not change their percentage interest in the company's equity, except for fractional shares.

How many outstanding shares of common stock will there be after the dividend?

After the dividend, the outstanding shares of Interlink's common stock will increase to approximately 9,860,355.

Who should stockholders contact for questions about the Stock Dividend?

Stockholders with shares in brokerage accounts should contact their broker, while other stockholders can reach out to the Company's transfer agent, Computershare, at (800) 962-4284.