QAD Inc. (QADI) Board Adopts Recapitalization Plan, Subject to Stockholder Approval

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QADI Hot Sheet

Overall Analyst Rating:
BUY (= Flat)

QAD Inc. (Nasdaq: QADI) announced that their Board has approved a recapitalization plan. The proposed plan is subject to stockholder approval.

Highlights of the Proposed Recapitalization Plan:

The proposed recapitalization plan allows QAD greater flexibility to issue Class A common stock in the future for corporate purposes, including financings, acquisitions or employee compensation, with limited dilution of existing stockholder voting rights.
Holders of Class A common stock will be entitled to receive a dividend equal to 120% of any dividend payable on Class B common stock, other than dividends declared for the purpose of distributing proceeds received by the Company from any transaction determined by the Board to be a material transaction not in the ordinary course of business, dividends effecting a spin-off of a subsidiary of the Company or dividends payable solely in the Company’s capital stock.

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