STRAIGHT PATH COMMUNICATIONS INC. (NYSEMKT:STRP) Files An 8-K Other Events
Item 8.01
| Other Events. |
On April 9, 2017, Straight Path Communications Inc. (the Company)
and IDT Corporation (IDT) entered into a binding term sheet (the
Term Sheet), providing for the settlement and mutual release of
the potential indemnification claims asserted by each of the
Company and IDT in connection with liabilities that may exist or
arise relating to the subject matter of the investigation by
(including but not limited to fines, fees or penalties imposed
by) the Federal Communications Commission (the Mutual Release).
to the Term Sheet, in exchange for the Mutual Release, IDT will
pay the Company $16 million, the Company will transfer to IDT its
ownership interest in Straight Path IP Group, Inc. (SPIP), a
subsidiary of the Company that holds intellectual property
primarily related to communications over computer networks, and
stockholders of the Company will receive 22 percent of net
proceeds, if any, received by SPIP from any license, transfer or
assignment of any of the patent rights held by SPIP, or any
settlement, award or judgment involving any of the patent rights
(including any net proceeds received after the closing of the
proposed merger of the Company with ATT Inc.). The Term Sheet was
negotiated and approved by a special committee of the independent
directors of the Company. This summary is qualified by reference
to the full text of the Term Sheet, a copy of which is filed
herewith as Exhibit 99.1 and is incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit No. | Document | |
| 99.1 |
Term Sheet, dated April 9, 2017, relating to the settlement of claims between Straight Path Communications Inc. and IDT Corporation |
About STRAIGHT PATH COMMUNICATIONS INC. (NYSEMKT:STRP)
Straight Path Communications Inc. is a communications asset company. The Company owns Straight Path Spectrum, Inc. (Straight Path Spectrum), Straight Path Ventures, LLC (Straight Path Ventures), and Straight Path IP Group, Inc. (Straight Path IP Group). The Company’s segments include Straight Path Spectrum, Straight Path Ventures and Straight Path IP Group. The Company holds a range of licenses for fixed and mobile wireless spectrum in the United States. These include licenses in the 39 gigahertz (38.6-40 gigahertz) band and the 28 gigahertz (27.5-28.35 gigahertz) portion of the local multipoint distribution service (LMDS) band. The Company also holds licenses for fixed wireless spectrum in other parts of the LMDS band. Straight Path Ventures is engaged in developing wireless technology. The Straight Path IP Group’s principal business is the acquisition, development, licensing and protection of intellectual property. STRAIGHT PATH COMMUNICATIONS INC. (NYSEMKT:STRP) Recent Trading Information
STRAIGHT PATH COMMUNICATIONS INC. (NYSEMKT:STRP) closed its last trading session up +55.16 at 91.64 with 272,124 shares trading hands.
