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EDCI Holdings (EDHI) Approves Dissolution and Liquidation

January 7, 2010 10:46 AM EST
EDCI Holdings, Inc. (Nasdaq: EDCI) voted to approve the voluntary dissolution and liquidation of the Company pursuant to a Plan of Complete Liquidation and Dissolution. Approval of the Plan of Dissolution required the affirmative vote of a majority of the outstanding shares of EDCI's common stock. Stockholders representing approximately 67% of the outstanding shares of EDCI's common stock voted in favor of the Plan of Dissolution, and of the stockholders voting, over 99% voted in favor of the Plan of Dissolution.

As previously announced by the Company, in connection with the approval of the Plan of Dissolution, the Company's Board of Directors has approved an initial distribution of cash to its stockholders of up to $30 million. In addition, EDCI is also considering using a portion of the initial distribution of up to $30 million to effect a tender offer in conjunction with the dissolution process. The Board of Directors of EDCI will meet shortly to: a) fix the record date for determining stockholders entitled to participate in the initial distribution b) establish the date for which the stockholders eligible to participate in the initial distribution will be paid and c) determine what portion, if any, of the initial distribution will be used to effect a tender offer.

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