The stock price of CSP Inc. (NASDAQ: CSPI) has increased significantly, rising 22.66% to $41.35 in early trades today. This increase is in response to a recent declaration on dividend payments and stock restructuring.
The firm announced that a two-for-one stock split, to be implemented as a 100% stock dividend on its current common shares, has been approved by its Board of Directors. For every share retained, shareholders as of March 6, 2024, closing bell, will be entitled to an extra share of common stock. The stock split is scheduled for March 20, 2024, and post-split trading will start on March 21. The business expects to have about 9,753,900 outstanding shares following the split.
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This move aims to enhance liquidity in CSPI shares, facilitating greater institutional participation and bolstering shareholder value, coinciding with the company’s expanding business opportunities. Notably, the recent introduction of its ARIA Zero Trust PROTECT offering has generated significant interest, with the stock split underscoring confidence in the prospects of this product and the broader business.
In addition, CSPI has raised the pre-split amount of its quarterly cash dividend to $0.05 per share. The next payment to shareholders registered as of February 26, 2024 is expected to be made on March 8, 2024. The stock split will be reflected in future dividend adjustments.
Further, ARIA Cybersecurity Solutions, a CSPI division, has formed a strategic alliance with a top global cybersecurity integrator as one of CSPI’s strategic initiatives. Through this partnership, ARIA’s operational technology (OT) environment security solution, AZT PROTECT, will be accelerated in its adoption. It has been recognized as a superior solution for protecting vital infrastructure in industries like manufacturing, pharmaceuticals, energy, and utilities.
With this alliance, CSPI should be able to greatly expand its sales reach, allowing AZT PROTECT to be implemented in a variety of sectors to meet the urgent demand for OT security. The partnership makes use of the integrator’s well-established network and experience providing cutting-edge cybersecurity solutions to a wide range of global clients.
A deliberate move to increase shareholder value amid bright economic prospects can be seen in CSP Inc.’s recent stock split and dividend adjustment. This is especially true given the increasing interest in its ARIA cybersecurity services and strategic alliances to broaden the company’s global reach.
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