NEW YORK, Jan. 7 /PRNewswire-FirstCall/ -- EDCI Holdings, Inc. (Nasdaq: EDCI) ("the Company" or "EDCI"), today announced that, at the Company's Special Meeting of Stockholders held on January 7, 2010, the stockholders of EDCI voted to approve the voluntary dissolution and liquidation of the Company pursuant to a Plan of Complete Liquidation and Dissolution (the "Plan of Dissolution"). Approval of the Plan of Dissolution required the affirmative vote of a majority of the outstanding shares of EDCI's common stock. Stockholders representing approximately 67% of the outstanding shares of EDCI's common stock voted in favor of the Plan of Dissolution, and of the stockholders voting, over 99% voted in favor of the Plan of Dissolution.
As previously announced by the Company, in connection with the approval of the Plan of Dissolution, the Company's Board of Directors has approved an initial distribution of cash to its stockholders of up to $30 million. In addition, EDCI is also considering using a portion of the initial distribution of up to $30 million to effect a tender offer in conjunction with the dissolution process. The Board of Directors of EDCI will meet shortly to: a) fix the record date for determining stockholders entitled to participate in the initial distribution b) establish the date for which the stockholders eligible to participate in the initial distribution will be paid and c) determine what portion, if any, of the initial distribution will be used to effect a tender offer.
About EDCI Holdings, Inc.
EDCI Holdings, Inc. (Nasdaq: EDCI) is a multi-national company, headquartered in New York, that is seeking to enhance shareholder value by pursuing acquisition opportunities. EDCI is the holding company of Entertainment Distribution Company, Inc., which is the majority shareholder of Entertainment Distribution Company, LLC ("EDC"), a European provider of supply chain services to the optical disc market. EDC serves every aspect of the manufacturing and distribution process and is one of the largest providers in the industry. EDC's clients include some of the world's best-known music, movies and gaming companies. EDC's operations include manufacturing and distribution facilities in Hannover, Germany. For more information, please visit www.edcih.com.
Cautionary Statement About Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties concerning EDCI's proposed Plan of Dissolution. Actual results may differ materially from the results predicted. More information about these and other important factors that could affect our business and financial results is included in the "Risk Factors" section of our quarterly report on Form 10-Q we filed with the Securities and Exchange Commission ("SEC") on October 30, 2009 and the proxy statement we filed with the SEC on November 16, 2009.
Web site: www.edcih.com
SOURCE EDCI Holdings, Inc.