Sensormatic Announces Dividend on Convertible Preferred Stock.
The dividend will be payable on January 4, 1999 to holders of record of the Depositary Shares as of December 22, 1998. In accordance with the formula established under the terms of the Convertible Preferred Stock, the dividend payment will be made in Sensormatic Common Stock, at a rate of 0.057959 shares of Common Stock for each outstanding Depositary Share, based on a cash dividend equivalent amount of $0.40625 per Depositary Share. In payment of this dividend, Sensormatic will issue approximately 399,920 shares of Common Stock in the aggregate.
The shares of Sensormatic's Common Stock issued as dividends on the Depositary Shares are not currently registered under the Securities Act of 1933, as amended. Sensormatic has filed a Shelf Registration Statement with the Securities and Exchange Commission (SEC) to cover resales of the Depositary Shares, the Preferred Stock and the Common Stock issuable upon conversion and in payment of Preferred Stock dividends. The Company's Registration Statement is currently in the review process with the SEC.
In accordance with the terms of the Preferred Stock Offering, effective August 12, 1998 (120 days after consummation of the Offering) and through the effective date of the Shelf Registration Statement, a premium payment of 0.25% per annum of the liquidation preference of the Preferred Stock will be included with the dividend payment. The January 4, 1999 premium payment will be made in Sensormatic Common Stock, at the rate of 0.002118 shares of Common Stock for each outstanding Depositary Share, based on a cash equivalent amount of $0.01563 per Depositary Share. In payment of this premium, Sensormatic will issue approximately 14,612 additional unregistered shares of Common Stock in the aggregate.
Sensormatic Electronics Corporation is a leading supplier of electronic security systems to the retail, commercial and industrial marketplaces. Sensormatic is also a leader in integrated source tagging -- a process where consumer goods manufacturers insert anti-theft tags at the point of manufacturing or packaging. For more information on Sensormatic, visit its homepage on the World Wide Web at http://www.sensormatic.com.
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|Date:||Dec 17, 1998|
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