Shares of Image Sensing Systems (ISNS) surged an astounding 8% on market open. The company engages in the development and marketing of video and radar image processing products used in traffic applications such as intersection control, highway, bridge and tunnel traffic management, and traffic data collection.
A couple days ago, the company announced strategic changes to it’s business:
- The initiation of a quarterly cash dividend to common shareholders of $0.12 per share of common stock on May 20, 2021 to shareholders of record at the close of business on May 10, 2021.
- Authorized a stock buyback program under which it may repurchase up to 200,000 shares of common stock.
- The implementation of a holding company reorganization.
- The new holding company, Autoscope Technologies Corporation, will become the new parent company of Image Sensing Systems.
- Image Sensing Systems’ current Executive Chairman, Andrew Berger, will be transitioning to Autoscope Technologies Corporation’s Chief Executive Officer.
The reorganization is expected to be completed by the end of the second quarter of 2021. When implemented, the reorganization will result in a new holding company, Autoscope Technologies Corporation, that will become the new parent company of Image Sensing Systems and will replace Image Sensing Systems as the public company trading on Nasdaq.
Under the planned holding company reorganization, existing shares of Image Sensing Systems would be automatically converted on a one-for-one basis into shares of common stock of Autoscope Technologies Corporation. Shareholders would not need to return stock certificates or otherwise take any action with respect to their shares of Image Sensing Systems common stock.
It is anticipated that the holding company reorganization would be a tax-free transaction for U.S. federal income tax purposes for Image Sensing Systems and its shareholders. The public company reorganization is not expected to result in a change in the directors, executive officers, management, or business of Image Sensing Systems.