Question regarding dividend mentioned.
Never heard of this stock until a few weeks ago. The dividend mentioned seems like a "no-brainer" quoting an earlier post. I have no shares at the moment, and I've made some ill advised investments over the years. Those who have been with this stock should have a better insight into the reliability of what the company issues in press releases or in filings. There are two small sections within their 3Q filing that reads to me to give them a great deal of latitude with this dividend.
"The timing and form of such a potential distribution will depend upon PharmAthene's analysis of its current situation, applicable corporate statutes relating to distributions, and the economic consequences to its shareholders."
"...risks relating to the timing of payments, if any, under the SIGA litigation; our ability to make distributions of a substantial portion of the cash proceeds we may receive from SIGA; the timing, amount and form of such a distribution;..."
I've gone over a number of recent posts, and nobody mentions these passages. I know most companies give themselves some room to maneuver, but how could issuing the dividend have a detrimental effect on "the economic consequences to its shareholders"? Then what do they mean by "the timing, amount and form of distribution"? Would or could the dividend be paid out over a period of time? The amount of dividend could vary a bit, so that doesn't concern me, however what about "the form of distribution"? Wouldn't it be paid in cash, or could this be a dividend worked out on paper in some, or all in receiving an equivalent amount of stock?
Lastly, why would PIP devastate their balance sheet by giving up 90% of this settlement? Don't they need any of this money to grow their business? Well, I've asked a bunch of questions. Please note I'm not trashing or bashing this stock. Just want a couple of veteran opinions before I decide about joining this quest. Thanks for any insight, and Good Luck to All. Was going to put GLTA, but figured if you made it this far I wouldn't abbreviate!
