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Director, senior manager get stock windfall at Jamaican Teas

Jamaican Teas Limited handed over 21 million shares to a director and a senior manager pursuant to share options granted by the company. 

The disclosure, made earlier this month, was an action which took effect on November 30.

The Jamaican Teas stock which has been bullish on the news of a stock split, rose to an annual high of $6.62 in value per unit on November 24, 2020.

The date on which the director and the senior manager received the shares, November 30, was the same day the company’s planned stock split took effect, and thereafter the price of the stock shifted downward.

On November 30, the value was $1.94 per unit. The manager and director therefore received stock totalling $40.74 million in value.

At the stock’s high in November, the transfer would have been worth $139.20 million in total.

On the Jamaican Stock Exchange, it is traditional for stock which has split to return to its mean value, especially if supported by company performance. Since the start of 2020, Jamaican Teas’ stock price has averaged $4 per unit.

Jamaican Teas revived its motion for a three-to-one stock split, in final quarter 2020, this after an earlier push was delayed by emerging market conditions. 

The stock split was to be put to the company’s shareholders for their approval at in mid-November.

The new stock split is the third one to be pursued by the company since listing in the Junior Market of the Jamaica Stock Exchange in 2011.

Issued shares for the company totalled 698,283,459 before this third split.

Following the latest split, shares in issue now total 2,115,850,377 units.

The current market  value of Jamaican Teas is  $3. 87 billion, with stock price closing at $1.83 per unit on Monday December 7, 2020.