ClearOne announces special stock dividend ahead of potential asset sale

SALT LAKE CITY - ClearOne (NASDAQ:CLRO) announced a one-time special stock dividend as part of its strategic process to potentially sell all or substantially all of its assets, according to a company press release. The announcement comes as the stock shows strong momentum, with a 19% return over the past week and trading at $11.91, according to InvestingPro data.

The special dividend will be payable on July 18 to stockholders of record as of July 11, 2025. Shareholders will receive one share of Class A Redeemable Preferred Stock for every share of common stock they hold.

The Class A Preferred Stock is designed to give existing shareholders full ownership of proceeds from any eventual asset sale. If the company completes an asset sale, the preferred shares will be redeemed for 100% of the net proceeds from the transaction.

The preferred shares will not be registered under securities laws and will be restricted from transfer. Nasdaq has advised the company that no ex-dividend date will be issued, meaning only stockholders of record at the close of business on July 11 will receive the dividend.

ClearOne noted that anyone purchasing common shares after the record date will not receive the special dividend for those shares.

The company stated that no additional dividends have been authorized or are currently contemplated. Future dividend decisions will be evaluated by the board based on relevant factors at that time.

ClearOne describes itself as a global market leader in conferencing, collaboration, and network streaming solutions. The company currently operates with moderate debt levels and a market capitalization of $20.64 million. For deeper insights into ClearOne’s financial health and more exclusive analysis, visit InvestingPro, where subscribers can access 8 additional key insights about the company’s performance and outlook.

In other recent news, ClearOne Inc. has announced a 1-for-15 reverse stock split of its common stock, which will take effect on June 9, 2025. This decision follows stockholder approval and aims to ensure compliance with Nasdaq’s minimum bid price requirements. The reverse split will decrease the number of issued and outstanding shares from approximately 26.0 million to about 1.7 million, while the total authorized shares remain unchanged. ClearOne’s transfer agent, Colonial Stock Transfer, will manage the process, and stockholders with shares in electronic form or brokerage accounts will see automatic adjustments. Additionally, ClearOne updated its partners on a $3 million convertible note offering, which was originally announced on June 25. The company is evaluating strategic alternatives, although specific details have not been disclosed. These developments indicate ongoing efforts by ClearOne to align with market requirements and explore potential strategic opportunities.

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