Long-awaited Ja­maican Teas stock split for Novem­ber 30

Share­hold­ers to vote on Novem­ber 17

Daily Observer (Jamaica) - - BUSINESS OBSERVER - BY DUR­RANT PATE

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.

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