Jamaican Teas Limited has advised that it pursuing a three to one stock split once again after it was delayed due to the coronavirus pandemic.
The company, which engages in manufacturing, retail and real estate, indicates that on October 7, its directors approved a resolution which set November 30, 2020 as the new record date for the proposed stock split.
The stock split is to be put to the company’s shareholders for their approval at a continuance of the annual general meeting which was adjourned on June 17, 2020.
The date for the reconvening of the company’s annual general meeting is November 17, 2020. This meeting will be followed by an extraordinary general meeting on the same day, a notice from the company indicates.
Meanwhile, the value of the stock has been climbing since announcement of the planned action.
Historically, the price of shares appreciates to near the pre-split level after each split, a record which is probably driving trade in the stock.
The value climbed 9.37 per cent to an annual high of $5.20 on the news of the Board’s planned action last week, but sank again on profit taking.
Price per stock unit closed at $5.08 each on Friday, October 9, 2020, with 2.44 million shares traded on the market that day.
More positive market conditions have become apparent since September 2020 on the Jamaican capital markets with a successful APO by Barita Investments Limited and IPO by Tropical Battery Limited.
The stock split is the third one to be pursued by Jamaican Teas since listing in the Junior Market of the Jamaica Stock Exchange.
In April 2017, Jamaican Teas shareholders approved a two-to-one split of the stock.
This followed another split in 2016 when authorised share capital was increased from 250 million shares to 500 million shares and the issued shares was increased from 168,708,365 to 337,416,730. Issued shares for the company now totals 698,283,459.