GLEN ALLEN, Va.--(BUSINESS WIRE)--Straight Path Communications Inc. (SPCI) today announced that its spin-off from IDT Corporation (NYSE: IDT) has been successfully completed following the distribution of SPCI common stock to IDT stockholders. SPCI Class B Common Stock will begin trading regular way today on the NYSE MKT with the ticker symbol “STRP”. To mark the occasion, Straight Path’s President & Chief Executive Officer, David Jonas, will ring the closing bell on the New York Stock Exchange today at 4 PM Eastern.
Holders of IDT Class A and Class B common stock as of the record date, July 25, 2013, were issued one share of SPCI Class A and Class B common stock, respectively, for every two shares of IDT stock. 787,163 shares of SPCI Class A and 10,693,210 shares of Class B common stock were distributed at 11:59 p.m. yesterday.
SPCI’s President & Chief Executive Officer, David Jonas, said, “The spin-off of Straight Path Communications is an important milestone in our efforts to realize the full potential of our spectrum holdings and intellectual property.”
“Our spectrum licenses, originally purchased from Winstar Communications, cover virtually the entire United States and offer a superior wireless backhaul solution. They are a cost effective alternative to fiber optic cables for data transport within telecom and Internet networks. Our intellectual property, which was central to Net2Phone’s success as an early leader in the VoIP industry, is being directly infringed by communications services and by the electronic manufacturers that pre-install these services on their equipment,” Jonas added.
“As a company that was nurtured within IDT—as were Net2Phone, Genie Energy, and IDT Entertainment — Straight Path brings a profound appreciation for innovation and the development of assets to maximize value for our shareholders,” Jonas concluded.
“In addition to our spectrum license and intellectual property holdings, SPCI was spun off with $15 million in cash. We intend to keep operating expenses to a minimum, and closely control capital investment to ensure that our cash is sufficient to support our operations for some time. We will seek to balance expenditures while actively monetizing our assets to allow investors to realize the upside potential of our businesses,” said Jonathan Rand, SPCI’s Chief Financial Officer.
About Straight Path Communications Inc. (SPCI):
SPCI (NYSE MKT: STRP) leases its extensive holdings of 39 and 28 GHz fixed wireless spectrum licenses through its Straight Path Spectrum subsidiary. SPCI holds and licenses certain patent rights through its Straight Path IP Group subsidiary.
About IDT Corporation:
IDT Corporation (NYSE: IDT) through its IDT Telecom division, provides telecommunications and payment services. IDT Telecom’s retail products allow people to communicate and share resources around the world while its carrier services business is a global leader in wholesale voice termination. For more information, visit www.idt.net.
IDT has spawned several other successful companies including Net2Phone (formerly NTOP on NASDAQ), for which AT&T invested $1.4 billion for a 32% share in 2000, IDT Entertainment, which was sold to Liberty Global (NASDAQ: LBTYA) in 2006 for $186 million and became known as Starz Distribution (the motion picture, animation, television and home video operating unit of Starz (NASDAQ: STRZA, STRZB)), and Genie Energy (NYSE: GNE), which was spun off to IDT stockholders in 2011 and currently has a market cap of over $200 million.
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent Form 10 filing (under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.