SRAX Announces $10M Stock Buy-Back Program and One-Time Special Dividend of Approximately $0.23 per Share

Rhea-AI Summary

SRAX, Inc. (NASDAQ: SRAX) has launched a $10M stock buy-back program and declared a one-time special dividend of about $0.23 per share for its shareholders. Preferred shares will also be issued to common stockholders on September 20, 2021, encompassing approximately $6.5M worth of Sequire client stock, with proceeds being distributed as these shares are sold. The company expresses confidence in its financial position to undertake these initiatives, aimed at rewarding shareholders.

Positive

• Announcement of a $10M stock buy-back program.
• Declaration of a special dividend of approximately $0.23 per share.
• Issuance of preferred shares worth $6.5M to common stockholders.

Negative

• None.

SRAX, Inc. (NASDAQ: SRAX), a financial technology company that unlocks data and insights for publicly traded companies through Sequire, its SaaS platform, announced today a $10M stock buy-back program, and a one-time special dividend of approximately $0.23 per share.

The company will be issuing preferred shares to shareholders of SRAX common stock on September 20, 2021. The preferred shares will hold approximately $6.5M worth of Sequire clients stock, and as the shares are sold, the proceeds will be distributed to the preferred shareholders.

“We’re excited to reward our shareholders with this dividend,” said Christopher Miglino, Founder and CEO of SRAX. “We think there’s an opportunity to begin buying back shares of SRAX and we’re in the right financial position to do so.”

About SRAX

SRAX (NASDAQ: SRAX) is a financial technology company that unlocks data and insights for publicly traded companies. Through its premier investor intelligence and communications platform, Sequire, companies can track their investors’ behaviors and trends and use those insights to engage current and potential investors across marketing channels. For more information on SRAX, visit srax.com and mysequire.com.

Cautionary Statement Regarding Forward-Looking Information:

This news release contains "forward-looking statements'' made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "seek" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in our business, and our need for future capital. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in SRAX's periodic reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2019, its Quarterly Reports on Form 10-Q as well as and in other reports filed with the SEC. We do not assume any obligation to update any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210817005390/en/

FAQ

What is the special dividend amount announced by SRAX?

SRAX announced a special dividend of approximately $0.23 per share.

When will SRAX issue preferred shares to common stockholders?

Preferred shares will be issued to common stockholders on September 20, 2021.

How much is SRAX's stock buy-back program?

SRAX has initiated a stock buy-back program worth $10 million.

What is the value of the preferred shares issued by SRAX?

The preferred shares will represent about $6.5 million worth of Sequire client stock.