Decisive Dividend Corporation Announces Suspension of Monthly Dividend
Kelowna, British Columbia - TheNewswire - March 31, 2020 - Decisive Dividend Corporation (TSXV:DE) (the "Corporation" or "Decisive") today announced it will be suspending its monthly dividend after payment of the previously announced dividend of $0.03 per common share on April 15, 2020.
The board of directors of the Corporation made the difficult but prudent business decision to suspend monthly dividend payments in response to the considerable economic uncertainty surrounding the worldwide COVID-19 pandemic and the significant decline in global oil prices. The global response to COVID-19 continues to evolve rapidly and has already had a significant impact on financial markets and the global economy. Decisive remains committed to paying a dividend over the long term and will resume payments when appropriate and prudent to do so.
Decisive has been and continues to consult with the senior executives of its operating subsidiaries on a regular basis with a view to safeguarding its business, its workforce and its customers. Recent disclosures included the impact on Unicast Inc., due to Chinese manufacturing and shipping delays, and the impact on Hawk Machine Works Ltd. due to the three-week temporary closure of its plant.
The extent and duration of the effects that COVID-19 and declining oil prices will have on the overall economy remains unknown and as such Decisive intends to manage itself with an abundance of caution in this challenging business environment. Decisive and its subsidiaries have implemented measures to reduce costs wherever possible and have suspended all non-essential capital expenditures for the remainder of the year.
The directors and management of the Corporation believe that the temporary dividend suspension, along with the other capital preservation measures put in place, will provide greater financial strength through this period of uncertainty. As one of Decisive's objectives is to pay a regular dividend to its shareholders over the long term, Decisive plans to re-commence the declaration and payment of dividends when determined appropriate by its board of directors.
James Paterson, Chief Executive Officer of Decisive, noted:
"The decision to suspend the monthly dividend was very difficult and one that we as management and the board did not take lightly. We are extremely proud of our dividend track record since declaring our first monthly dividend nearly five years ago, just after completing our first acquisition. The April dividend will mark the 58th consecutive monthly dividend payment with $12.7 million in aggregate dividends paid out during that time. However, these are truly unprecedented times and our key focus right now is to preserve long-term value for shareholders. We are fortunate that our operations are diversified in terms of the industries, customers, and geographies they serve, and we believe that preserving financial strength and flexibility during this time of economic uncertainty will hasten our ability to reinstitute our dividend and leave us better positioned to take advantage of potential opportunities once the effects of these recent developments subside."
Decisive is continually assessing the actual and potential impact of these recent developments on the Corporation and its operating subsidiaries. The impact on Decisive will depend on a number of factors, including the extent and duration of the impact of these recent developments on the overall economy, as well as their impact on the customers of its operating subsidiaries and the industries in which they operate.
About Decisive Dividend Corporation
Decisive Dividend Corporation is an acquisition-oriented company, focusing on the manufacturing sector. Decisive uses a disciplined acquisition strategy to identify profitable, established companies that have strong management teams, generate steady cash flow, operate in non-cyclical markets, and have opportunity for future growth.
For more information on Decisive, or to sign up for email notifications of Corporation press releases, please visit www.decisivedividend.com. Additional information, including all public filings, is available on SEDAR (www.sedar.com).
FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Torriero, Chief Financial Officer
#201, 1674 Bertram Street
Kelowna, BC V1Y 9G4
Telephone: (250) 870-9146
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this press release.
This press release contains forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release are considered forward-looking statements, including without limitation management's expectations, intentions and beliefs concerning the impact of recent developments on the Corporation and its operating businesses and the dividend policy, including re-commencing dividend payments. Many of these statements can be identified with words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" and similar words or the negative thereof. Forward-looking statements are subject to risks, uncertainties and assumptions. Forward-looking statements reflect management's current beliefs and assumptions which are based on information in its possession on the date of this press release. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such assumptions and expectations will provide to be correct. The actual results of the Corporation and its operating subsidiaries could be materially different from those anticipated in the forward-looking statements contained herein as a result of certain risk factors. Such risk factors include but are not limited to the risk factors identified by the Corporation under the heading "Risk Factors" in its latest annual information form and management discussion and analysis, copies of which are available on the Corporation's profile at www.sedar.com, as well as risks associated with COVID-19 and the global response thereto, and the recent decline in oil prices. Such risks include, without limitation, the effect of these recent developments on the business of the customers and suppliers of the Corporation's operating subsidiaries, the ability of such customers and suppliers to assess and mitigate the impacts of these recent developments, and the general impact of these recent developments on the Canadian, U.S. and global economy. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and the Corporation does not undertake or assume any obligation to update or revise any such statement to reflect new events or circumstances except as expressly required by applicable securities laws.
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