Ealier, we wrote on the upcoming LRAD spinoff of Parametric Sound in LRAD to Spin Off Parametric Sound, The Company Nobody Wanted. Things have proceeded and the company will be distributing 1 share in Parametric Sound on September 27 for every 2 shares of LRAD owned on September 10. The new company will trade on the OTCBB and has no proposed ticker symbol. The company’s filing can be found here.
LRAD is itself a tiny company, with a market cap of under $30 million. Parametric Sound has insignificant revenues, but the founder of LRAD will be taking a major role there and believes he has a new technology to contribute which will be beneficial to expanding sales. Parametric Sound is likely to have a market cap of below $5 million, be illiquid and subject to extreme selling pressure.
LRAD, while small, has been profitable of late, and may benefit from increased focus. We’re buying neither, but both, perhaps, bear watching.
Disclosure: The author has no position in any stock mentioned