World VoIP NewsIDT starts the spin-off process of VoIP patents and licensing
IDT starts the spin-off process of VoIP patents and licensing
IDT Corporation declared the initiation of spin-off process for portfolio of patents in associated primarily with telecommunications over IT, including VoIP, and the licensing procedures related to those patents to its shareholders.
Company shareholders will acquire one share of Innovative Communications Technologies, Inc. (ICTI) which will include the patents and the related licensing business, for every five shares of IDT. The processing and share distribution dates have not yet been announced. Once the spin-off is executed, ICTI is expected to conquer the over-the-counter market.
“It is likely that many companies are currently using the technologies covered by these patents,” said Howard Jonas, IDT’s Chairman, Chief Executive Officer and the founder of Net2Phone, a pioneer in VoIP telecommunications that is now a wholly owned subsidiary of IDT.
“As an independent publicly traded company, ICTI will be optimally positioned to license these patents and enforce its intellectual property rights. This spin-off maximizes the potential to create substantial value for our shareholders from this IP over the long term,” Mr. Jonas added.
The process of the spin-off is subject to final confirmation and approval by IDT’s board of directors, procedures of the tax-free nature of the transaction, as well as effectiveness of a Form 10 registration statement filed with the Securities Exchange Commission (SEC).
Specific ICTI’s Form 10 was filed recently with the SEC and consists with detailed information about ICTI, the spinoff and related matters. ICTI will distribute an information statement to stockholders following completion of the SEC’s review of the Form 10. IDT’s board of directors reserves the right to amend, modify or abandon the spin-off and the related transactions at any time prior to the distribution date.
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