Long-awaited Jamaican Teas stock split for November 30
Shareholders to vote on November 17
the long-awaited Jamaican teas three-to-one stock split is now set to take place on november 30, more than seven months after the April 1 initial date.
The way was made clear for the stock split on Wednesday last when the board of directors of Jamaican Teas approved a resolution, setting November 30, 2020, as the new record date for the three-to-one stock split.
However, before the stock split can be effected, it will be put to shareholders for their approval at the continuance of their annual general meeting (AGM), which was adjourned on June 17, 2020.
The date for the reconvening of the AGM will be November 17, three days before the stock split. This meeting will be followed by an extraordinary general meeting on the same day.
The three-to-one stock split, when it happens, will result in the total issued shares in the company being increased from 695,083,459 ordinary shares to 2,085,250,377 ordinary shares. The delay in the stock split and the discontinuation of the AGM was due to the COVID-19 pandemic and in accordance with the pronouncements of the Government of Jamaica on March 16, ordering a restriction on large gatherings.
As such the AGM was rescheduled for a date and time best-suited and safe, healthwise for large gatherings. The stock split is being executed to make the shares in Jamaican Teas more liquid, allowing them to trade more freely.
When executed, this will be the third stock split by the company. In April 2017, Jamaican Teas shareholders approved a two-to-one split of the stock. This followed another split in 2016 after which the price climbed close to $8 per share.
The board of Jamaican Teas, led by businessman and financial analyst John Jackson, has become concerned that the company’s stock seems to have hit a wall of inactivity and market indifference. Jackson expressed the view that there seems to be market resistance whenever the stock hits the $6 to $7 margin.
Since April 2018, Jamaican Teas’ share price has meandered between $4 and $6, going close to the $7 barrier only twice last year, on August 5 and September 9.
At the close of trading on Thursday, October 8, Jamaican Teas stock gained $0.13 in price to end the day at $5.19. At year end September 2019 Jamaican Teas doubled profit, despite spinning off its investment arm, and listed a new company in QWI Investments.
Jamaican Teas owns 34 per cent shareholding in that company.