Completion of Acquisition or Disposition of Assets.
Stanley Furniture Company, Inc. (the “Company”) previously purchased corporate-owned life insurance policies as a potential funding source for a nonqualified deferred compensation plan established for select key executives in January 1986. The plan was frozen to new participants in 1991 and there are no active employees in the plan.
At December 31, 2015, the Company owned 27 life insurance policies with Genworth Life Insurance Company with a cash surrender value of $22.3 million, net of $5.5 million in loans and accrued interest. Subsequent to year end, the Company liquidated two of these policies with an aggregate cash surrender value of $2.6 million and used these funds to pay down policy loans and accrued interest.
After continued review of the financial stability of Genworth Life Insurance Company, the Company decided to surrender all of the remaining policies. On March 28, 2016, the Company received from Genworth Life Insurance Company $22.4 million in cash proceeds, which consisted of $25.6 million in cash surrender value net of $3.2 million in loans and accrued interest. The Company expects to use approximately $24.0 of its net operating loss carryforwards to reduce taxable income resulting from the payments received for surrender of these policies."
Now what do they so with $25.6 million in cash? ($1.67 per share!)
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