Web Hosting E-Commerce Firm, iMergent, Increases Quarterly Cash Dividend

Updated on Monday, September 17th, 2007 at 11:00 am

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Orem, Utah - (Cheap Web Hosting Directory) - September 17, 2007 - E-commerce web host, software and services provider for small businesses and entrepreneurs, iMergent, Inc.’s board of directors, has issued a directive to increase the company’s quarterly cash dividend from $0.10 per share to $0.11 per share on the company’s common stock.

In addition, the board declared that the dividend, which was previously paid semi-annually, will now be paid quarterly. The record date will be the twentieth day of the last month of each quarter and the payment date will be on the twenty-ninth day of the last month of each quarter. The next dividend will be paid on September 29, 2007 to stockholders of record on September 20, 2007.

Don Danks, Chief Executive Officer of iMergent remarked, ”Increasing the dividend illustrates the confidence we have that our business will continue to generate the free cash flow to invest in future growth and the commitment we have to deliver value to our shareholders.”

Recently, iMergent announced plans to appeal an order of the Ventura County Superior Court, which entered a preliminary injunction against the company. As reported in a SEC Form 8-K before the stock market today, the Court entered a preliminary injunction which requires the company to register under the California Seller Assisted Marketing Plans Act (”SAMP Act”) to engage in certain sales in the State of California until the case is resolved. The Court has not yet set a schedule for trial.

The company intends to appeal the preliminary injunction order with the California Court of Appeals on the grounds that relevant provisions of California’s SAMP Act are unconstitutionally vague and cannot be enforced. The company also intends to file a writ of supersedes with the California Court of Appeals in an attempt to stay enforcement of the preliminary injunction pending the outcome of the appeal on the grounds that the preliminary injunction constitutes a mandatory injunction mandating such a stay.

The company appointed Todd A. Goergen as non-executive Chairman of the Board of Directors, while Donald L. Danks remains as Chief Executive Officer and Director. In its SEC Form 10-Q for the quarter ended March 31, 2007, issued on May 10, 2007, the company disclosed that in an article in the May 5, 2007 edition of Barron’s alleged Don Danks shared material non-public information with select individual and institutional investors. In a conference call that day, the company also disclosed its general counsel together with outside counsel for the independent members of the board of directors, launched a thorough investigation of that allegation and the actions of the chief executive officer.

The independent members of the iMergent’s board of directors also took the following actions:

  • The Board of Directors accepted the resignation of Mr. Danks as chairman.
  • The Board of Directors determined to impose certain requirements on Mr. Danks including requiring him to attend compliance training, restricting his communications with outside securities professionals and requiring him to disclose to the general counsel on a monthly basis the identity of any securities professionals or investors with whom he has discussed the company.
  • The Board of Directors determined not to grant a salary increase to Mr. Danks and not to award him any compensation increases for at least the remainder of calendar year 2007.

iMergent provides eCommerce solutions to entrepreneurs and small businesses, designed to enable marketing and selling business products or ideas via the Internet. Headquartered in Orem, Utah, the company sells its proprietary StoresOnline software and training services, developed to help users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In connection with Internet software, iMergent also offers website development, website hosting, marketing and mentoring products and services. iMergent typically reaches its target audience through concentrated direct marketing efforts to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. The sessions lead to a follow-up Workshop Conference, where experts train potential users on the software and services and encourage them to make purchases.

For more information about iMergent, please visit: www.imergentinc.com.

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