The 8-K, essentially the press release, did not provide any more guidance on the issues that you raised. I would assume, absent any further comment from the company, that the "dividend" is a taxable event. As you suggested, a tender may have better served the shareholders.
I have not owned any INFT shares for years. I'm surprised that they have not tried to take the company private.
From the press release:
Under the offer to exchange or cash out employee options, approximately 980,000 stock options could be converted to approximately 360,000 shares of restricted stock and approximately 580,000 stock options could be cashed out by employees for approximately $900,000 dependent on the choices made by employees and the market price when the stock is granted. If employees do not elect to convert or cash out their stock options, such options, to the extent unvested, will be subject to immediate vesting. There are approximately 1,000,000 unvested stock options that will be subject to the offer. The additional stock granted to certain vested option holders could be up to an additional 35,000 shares dependent on the choices made by employees and the market price when the stock is granted. Inforte will incur a one-time charge of up to $220,000 for these additional shares dependent on the choices made by employees. |
