REMEC, Inc. (OTC:REMC) stock price broke out of the trading channel on significant trading volume after the company entered into a Liquidating Trust Agreement. Though, barely any volume was recorded pass that point.
The agreement signed between the company and Richard A. Sackett, named as a Trustee in the deal, is the first step for the creation and operation of REMEC Liquidating Trust. Through this trust, REMEC seeks to stop their business, pay off the debts and liquidate the remaining assets. [BANNER]
REMEC should transfer all of their assets on December 31, 2010. The liquidation of the trust itself is currently planned for March, 2011.
Shareholders can expect to receive adequate value for their shares as long as the company has the capital. Currently the company plans to pay out between 81 and 87 cents per share.
It was strange to see the share price go up, in the first place on such news. There is no point to buy the stock at market prices right now, but some shareholders are interested to sell as the price is currently 10% to 19% above the range offered by the company at liquidation. The trading of the stock has now virtually stopped in connection to the news announcement.
