LRAD Corp. set the record and distribution date for the company’s spin off of one of its business segments into a separately traded and independent company.
LRAD Corporation is spinning off its HSS technology business into a new company called the Parametric Sound Corporation. The company set September 10, 2010 as the record date for shareholders to be eligible to receive shares in the Parametric Sound Corporation. The shares will be distributed on September 27, 2010.
Shareholders of LRAD Corporation will receive one share of the Parametric Sound Corporation for every two shares they own. The distribution is expected to be considered a tax-free transaction for shareholders.
LRAD Corporation announced the idea for the spinoff of the HSS technology business back in April 2010. The management of LRAD Corporation said that the transaction would allow each company to focus better on its core competencies, and permit the market to value each business separately and more efficiently.
Tom Brown, the CEO of LRAD Corporation, said, “We view this HSS spin-off as a chance to increase stockholder value by allowing a separate company to concentrate on further developing the HSS technology.”
After the spinoff is complete, the LRAD Corporation will focus exclusively on developing products in the Long Range Acoustical Device (LRAD) product category.
For more information on the company, go to www.lradx.com
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