Published: September 20, 2010
GolfRounds.com, Inc. Announces Special Cash Dividend
MARIETTA, Ga. - (BUSINESS WIRE) - GolfRounds.com, Inc. (OTCBB:TEEE), announced that its Board of
Directors has declared a special cash dividend of $0.50 per share of
Common Stock issued and outstanding to be paid on October 21, 2010 to
shareholders of record as of September 30, 2010 using cash from its
general funds. The aggregate dividend to be paid is approximately $1.8
million, which will leave the company with approximately $180,000 cash
on hand.
The company expects that for tax purposes this dividend will be treated
as a return of capital to shareholders. Distributions that qualify as a
return of capital are not "dividends" for tax purposes. A return of
capital is a return of some or all of your investment in the stock of
the company. A return of capital reduces the basis of your stock. A
distribution generally qualifies as a return of capital if the company
making the distribution does not have any accumulated or current year
earnings and profits. Our company has no such earnings or profits. Once
the basis of your stock has been reduced to zero, any further
non-dividend distribution is capital gain. The tax characteristics of
the divided will be reported to each shareholder on Form 1099 after the
end of the 2010 calendar year.
The company does not have an operating business. The company believes
its principal assets are its status as a publicly traded, Exchange Act
reporting company and its net operating tax losses which can be
potentially carried forward. The company is seeking a business
combination partner that desires a public vehicle with no liabilities.
The Board believes that the company's current cash does not materially
enhance its attractiveness as a business combination candidate. The
Board believes that shareholders are best served by distribution of the
substantial majority of the company's cash to them. Accordingly, the
Company has determined to make the special dividend to shareholders
while continuing to seek business combinations and/or other strategic
alternatives for the Company.
Except for any historical information contained herein, the matters
discussed in this press release contain forward-looking statements that
involve risks and uncertainties, which are described in the Company's
SEC reports.
GolfRounds.com, Inc.
Robert H. Donehew, 770-951-0984
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