estimated $3.83 distribution coming, patent litigation settled. Terms not disclosed.
As previously disclosed, EDC has been a defendant in federal and state patent litigation related to its prior manufacturing operations. Included within the damages pleaded against EDC were amounts that relate to claims the plaintiff was pursuing jointly against EDC and one of its customers, for which EDC believes it has indemnification rights under certain contractual arrangements.
Effective August 20, 2013, the Court has entered an order affirming the voluntary dismissal of all claims, counterclaims and defenses the EDC patent litigation matters as a result of a voluntary mutual settlement. Terms of the settlement are confidential and are not being disclosed.
EDC and EDCI are currently evaluating making a distribution as a result of the settlement. Both companies will still need to maintain reserves necessary to complete the dissolution of EDCI and various subsidiaries, including carrying costs related to the sale of EDC's Kings Mountain, North Carolina facility. EDCI currently estimates the distribution to its stockholders would be approximately $22.7 million, or $3.83 per share.
I believe there will be more than one distribution since the company will still need to deal with the money in reserves related to the "sale of Kings Mountain". If those reserves aren't spent it makes sense that the shareholders receive any remaining funds as well.
Not info info but we should be getting $3.80 ish soon. I think they have remaining assets and maybe the land to sell. The proceeds will eventually get to us.
My guess is the shares trade above $4 today. Maybe higher.