Cyclacel to skip quarterly dividend on 6% convertible preferreds

By Jennifer Chiou

New York, Jan. 8 - Cyclacel Pharmaceuticals Inc.'s board again decided to forgo declaring the quarterly cash dividend on the company's 6% convertible exchangeable preferred stock, according to an 8-K filed with the Securities and Exchange Commission.

The resolution passed on Thursday and applies to the fourth-quarter dividend that would have been payable on Feb. 1.

The company added that unpaid dividends are accrued and if it fails to pay an aggregate amount equal to at least six quarterly dividends - whether or not consecutive - on the preferreds, the Cyclacel board will increase by two members.

Holders of the preferreds, voting separately as a class, will have the right to vote to fill the two vacancies until the accrued dividends are paid.

Cyclacel also did not declare a dividend during the first, second and third quarters.

The board will continue to evaluate the dividend payments on a quarterly basis.

Based in Berkley Heights, N.J., Cyclacel develops treatments for cancer and other disorders.

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