HOUSTON, TX--(Marketwired - Feb 14, 2017) - GeoMet, Inc. (OTC PINK: GMET) (OTC PINK: GMETP) ("GeoMet" or the "Company") today announced its first interim distribution to the holders of its Series A Convertible Redeemable Preferred Stock, par value $0.001 per share (the "Preferred Stock"), and the holders of its common stock, par value $0.001 per share (the "Common Stock").
On December 8, 2016, the Company filed a Verified Petition for Determination Pursuant to 8 Del. C. § 280(c) (the "Petition") in the Court of Chancery of the State of Delaware (the "Court") requesting that the Court determine the amount and form of security likely to be sufficient to provide compensation for certain claims made against the Company or that could arise during the dissolution.
On December 14, 2016, the Company filed a Motion for First Interim Distribution to Stockholders in the Court requesting that the Court authorize the Company to make one or more liquidating distributions to its stockholders in an aggregate amount of not more than $12,772,700.
On January 20, 2017, following the expiration of a Court-approved notice period to certain claimants, the Court entered an Order that, among other things, (i) determined that certain claims rejected by the Company as set forth in the Petition were barred pursuant to 8 Del. C. § 280(a)(2) or (a)(4), as applicable, (ii) determined that the Company had reserved sufficient security to (a) provide compensation for claims against the Company that were the subject of a pending action, suit or proceeding and for unknown claims that may arise against the Company within five years of the date of dissolution and (b) the Company's remaining dissolution expenses, (iii) authorized the Company to distribute an aggregate amount of not more than $12,772,700 to the Company's stockholders, (iv) authorized the Company to disburse any remaining assets to its stockholders at the end of the dissolution period, and (v) authorized the Company to pay 6% of any distribution in the dissolution to the holders of the Common Stock.
On January 25, 2017, GeoMet's Board of Directors (the "Board") unanimously approved a liquidating distribution in the amount of $12,772,700, in aggregate, to its stockholders of record as of February 8, 2017 (the "Record Date"). On, February 15, 2017, a cash distribution in the aggregate amount of $12,006,338 (94% of the amount approved by the Board) will be made to the holders of its Preferred Stock as of the Record Date (or $1.6636154 per share based on 7,217,015 shares of Preferred Stock issued and outstanding as of the Record Date) and a cash distribution in the aggregate amount of $766,362 (6% of the amount approved by the Board) will be made to the holders of its Common Stock as of the Record Date (or $0.0189163 per share based on 40,513,373 shares of Common Stock issued and outstanding as of the Record Date).