Mechanical Technology, Incorporated Announces Current Estimate of Tax Treatment and Information Regarding Ex-Dividend Date for Special Dividend
MTI announces today that it has estimated, for federal tax purposes, the tax treatment of the special cash dividend of $0.37 per share of outstanding common stock previously announced by the Company on February 26, 2019 (the "Dividend"). The record date for the Dividend was set at March 12, 2019. The Dividend will be payable on March 20, 2019 (the "Payment Date") and the Company has obtained additional information regarding the applicable Ex-Dividend Date.
ALBANY, N.Y., March 12, 2019 /PRNewswire-PRWeb/ -- Mechanical Technology, Incorporated ("MTI" or the "Company"), a publicly traded company (OTC Pink: MKTY) headquartered in Albany, New York, announces today that it has estimated, for federal tax purposes, the tax treatment of the special cash dividend of $0.37 per share of outstanding common stock previously announced by the Company on February 26, 2019 (the "Dividend"). The record date for the Dividend was set at March 12, 2019. The Dividend will be payable on March 20, 2019 (the "Payment Date") and the Company has obtained additional information regarding the applicable Ex-Dividend Date as described below.
US Federal Tax Treatment of the Special Dividend
MTI currently estimates that, for federal tax purposes, $0.16 per share of the Dividend will be treated as a taxable dividend, with the other $0.21 per share of the Dividend being first treated as a return on capital to shareholders to the extent of their basis in MTI common stock, and then as capital gain.
The tax treatment of the Dividend will be based on MTI's current and accumulated earnings and profits for MTI's fiscal year ending December 31, 2018. The process of determining current and accumulated earnings and profits is based on a final filing of the Company's 2018 federal tax returns. MTI expects the calculation of the portion that will be treated as a taxable dividend for federal tax purposes to be finalized in June 2019. Accordingly, the portion of the Dividend estimated to be a taxable dividend provided in this release is based upon currently available information and is subject to change. MTI currently expects to update information on taxation of the Dividend in June 2019.
Please note that the precise tax impact of the Dividend on specific shareholders depends upon a shareholder's individual tax situation. Shareholders are strongly urged to consult their personal tax advisors to discuss the tax implications of this special Dividend.
Ex- Dividend Date
The Ex-Dividend Date with respect to the Dividend is determined pursuant to applicable rules of the Financial Industry Regulatory Authority ("FINRA"), including the rules applicable to dividends or distributions which represent 25% or more of applicable security value. MTI confirmed with FINRA that the Ex-Dividend Date with respect to MTI's Dividend will be March 21, 2019.
Please visit https://www.mechtech.com under News & Events.
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About MTI
MTI is engaged in the design, manufacture, and sale of test and measurement instruments and systems through its subsidiary MTI Instruments, Inc. MTI Instrument's products use a comprehensive array of technologies to solve complex, real world applications in numerous industries including manufacturing, electronics, semiconductor, solar, commercial and military aviation, automotive and data storage. For more information about the Company, please visit https://www.mechtech.com.
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Contact Information:
Lisa Brennan
518-218-2592
[email protected]
SOURCE Mechanical Technology Inc.
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