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Posted On: 09/12/2020 9:27:00 PM
Post# of 36542
Re: All Aboard #20915
Yeah, never did get those extra NGIO dividends. His ‘explanation’ was the difference between a public company like GNBT, and non public like ngio. So between the record date and pay date, the public traded company carries the due bill process and the non public does not. I would be fine with that had not every single PR by the company leading up to the pay date stating the same 2 for 5 dividend. It was only after the fact that they said NGIO was different since it was non public company.
“ FINRA has determined that the original August 30 record date is too long ago to adequately track all the pay due bills from stock being bought and sold by investors, so a new record date of February 17th, 2020 has been established. This will insure everyone who has bought stock since August and retains the stock will receive the dividend not by way of a Pay Due Bill, but rather, directly from Generex. Those who sold stock after the original record date need not worry about anything as they were formally entitled to receive the dividend, but they would have had to transfer the dividend to the buyer of their shares. With the new February 17th record date being established, those who are entitled to receive the 5/2 stock dividend in Generex and the 5/2 stock dividend in NuGenerex Immuno-Oncology will receive it directly from the company.
th
In addition, the pay date is now February 24th and ex-date is February 25 . If a
shareholder sells the stock after the record date the pay due bill process will be in full effect and the shareholder will be required to transfer the dividend stock to the buyer. The ex-date rule in this situation is found in FINRA Rules Section 11140 (b)(2), which reads as follows: “(2) In respect to cash dividends or distributions, stock dividends and/or splits, and the distribution of warrants, which are 25% or greater of the value of the subject security, the ex-dividend date shall be the first business day following the payable date.””
Then he tried to tell me it was the same with the prior NGIO dividend. When you have a non public company, the record date is the date you use since it is not traded so there would be no trading between the record and pay dates. I did not purchase GNBT during the record and pay dates to know if those that did got NGIO. I thought I read that they did, however I have no proof.
That being said, I believe now that we may not be entitled to those NGIO shares. Not because of the dates but rather because the dividend was less than 25% of the company each time. Only on special dividends of 25% or more do you have the due bill process. So the 2 ngio for 5 GNBT since only amounted to less than 5-6% of NGIO being distributed. GNBT holds more than 90% of NGIO. So the reason given was not correct, in my opinion, however the end result may be correct since it was less than 25%.
“ FINRA has determined that the original August 30 record date is too long ago to adequately track all the pay due bills from stock being bought and sold by investors, so a new record date of February 17th, 2020 has been established. This will insure everyone who has bought stock since August and retains the stock will receive the dividend not by way of a Pay Due Bill, but rather, directly from Generex. Those who sold stock after the original record date need not worry about anything as they were formally entitled to receive the dividend, but they would have had to transfer the dividend to the buyer of their shares. With the new February 17th record date being established, those who are entitled to receive the 5/2 stock dividend in Generex and the 5/2 stock dividend in NuGenerex Immuno-Oncology will receive it directly from the company.
th
In addition, the pay date is now February 24th and ex-date is February 25 . If a
shareholder sells the stock after the record date the pay due bill process will be in full effect and the shareholder will be required to transfer the dividend stock to the buyer. The ex-date rule in this situation is found in FINRA Rules Section 11140 (b)(2), which reads as follows: “(2) In respect to cash dividends or distributions, stock dividends and/or splits, and the distribution of warrants, which are 25% or greater of the value of the subject security, the ex-dividend date shall be the first business day following the payable date.””
Then he tried to tell me it was the same with the prior NGIO dividend. When you have a non public company, the record date is the date you use since it is not traded so there would be no trading between the record and pay dates. I did not purchase GNBT during the record and pay dates to know if those that did got NGIO. I thought I read that they did, however I have no proof.
That being said, I believe now that we may not be entitled to those NGIO shares. Not because of the dates but rather because the dividend was less than 25% of the company each time. Only on special dividends of 25% or more do you have the due bill process. So the 2 ngio for 5 GNBT since only amounted to less than 5-6% of NGIO being distributed. GNBT holds more than 90% of NGIO. So the reason given was not correct, in my opinion, however the end result may be correct since it was less than 25%.
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Disclaimer: Of course, all of this is my opinion and you should not make any investment decisions based on my opinion. I have not received any non-public information.
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