Nov 12 2010
MEDTOX Scientific, Inc. (Nasdaq:MTOX) today announced that its board of directors approved a special one-time cash dividend of $1.25 per share. The special dividend will be payable on December 1, 2010, to stockholders of record on November 22, 2010.
Cash for the dividend will be provided by cash on hand and borrowing from the Company's short-term revolving credit facility. The Company currently has no short or long-term debt. A portion of the dividend may be a return of capital (cost basis) and will be nontaxable. That amount cannot be calculated until year-end and will be delineated as such on the form 1099-DIV provided to stockholders. The Company declared the dividend based on its improving performance, cash balances and anticipated ability to generate cash flow from operations, and therefore believes it appropriate to return some capital to stockholders through a one-time cash dividend.
MEDTOX Scientific, Inc.