Tix Corp. (OTCMKTS:TIXC) a leading company offering discount ticketing services said that its Board of Directors approved a program of paying a quarterly cash payout to the Company’s stockholders. The regular quarterly cash dividend, as announced by the company amounts to $0.05 per common share and will be paid on April 30, 2015 for a record date of April 16, 2015. It implies that the total annual dividend equates to $0.20 per share.
Tix Corp’s core business is carried out through its Las Vegas subsidiary known as Tix4Tonight. It offers last-minute discount dinner reservations and discount show tickets. The company made several strategic acquisitions, bought multiple prime booth locations and worked on staff training to improve the entire business model. The main objective was to generate consistent strong cash flows. In the past three years, the company paid the benefits to its stockholders by repurchasing over 27% of the Company’s outstanding shares.
The management view
Mitch Francis, the CEO of Tix Corp. (OTCMKTS:TIXC), said that the management is thrilled that the stockholders will not get a meaningful dividend. At the same time, the company will maintain adequate cash to operate business and support new strategic plans. The payment of dividend may result in a jump in share price, which could prompt some investors holding more than 5% of the company shares to sell them in such a way that could adversely affect the performance of the company. Tix Corp cannot prevent or control such an occurrence. The announced dividend program deal, which when coupled with existing stockholders right deal, has the potential to mitigate the risk of compromising the valuable asset.
Tix Corp is a leading company that offers discount ticketing services. It runs ten discount ticket outlets in Las Vegas. After the dividend announcement, the stock price of Tix Corp jumped 46.15% to close at $1.90 with share volume of 237,782.