I have seen some confusion over how and when the “dividend” works with us getting share of the new company. Here is an example of a real spin-off that happened earlier this month. The names have been changed to protect the innocent. We will receive a PR like this very soon... PLEASE READ. IT IS VERY IMPORTANT YOU UNDERSTAND THIS, IF YOU ARE NEW TO IT…
FITX Announces Record Date For Spin-Off of XXX MMJ GLOBAL
Record and Distribution Dates Announced in Anticipation of Creative Edge Nutrition’s Spin-off into XXX Global
Madison Heights, MI September 12, 2014 – FITX® (Nasdaq: FITX, a leading global provider, today announced that its board of directors has established a record date for the spin-off of its Dealer Services business unit, recently named XXX Global.
FITX anticipates that the two companies will be separated through a distribution of XXX Global shares after the market close on September 30, 2014 to FITX shareholders of record after the market close on September 24, 2014. No action or payment is required by FITX shareholders to receive the common stock of XXX Global in the distribution. Shareholders who hold FITX common stock on the record date will receive a book-entry account statement reflecting their ownership of XXX Global common stock, or their brokerage account will be credited for the shares.; The share distribution ratio for the spin is expected to be announced early next week.
For U.S. federal income tax purposes, FITX’s U.S. shareholders (other than those subject to special rules) generally should not recognize gain or loss as a result of the distribution of XXX Global shares, except with respect to any cash received in lieu of fractional shares. FITX shareholders are urged to consult with a tax advisor with respect to the tax consequences of the XXX Global spin-off.
FITX expects that XXX Global common stock will begin “when-issued” trading on September 22, 2014 in the public market on the NASDAQ under the symbol “ABCD” and will continue through the distribution date. FITX also anticipates that “regular way” trading of XXX Global will commence on the first trading day following the distribution date, October 1, 2014, under the symbol “ABCD”.
Beginning on September 22, 2014, and through the distribution date, it is expected that there will be two ways to trade FITX common stock - either with or without the right to receive shares of XXX Global common stock. Shareholders who sell their shares of FITX common stock in normal trading on the NASDAQ under the symbol “FITX” after the record date and on or prior to the distribution date will be selling their right to receive shares of XXX Global in connection with the distribution. It is anticipated that shares of FITX common stock will also trade without the right to receive the XXX Global distribution during that period under the symbol “FITXU”. Investors are encouraged to consult with their financial advisors regarding the specific implications of buying or selling FITX common stock on or before the distribution date.
The planned spin-off of Dealer Services into XXX Global will allow both FITX and XXX Global the opportunity to focus on their respective industries. FITX will remain focused on enhancing its position as a global nutritional provider, while XXX Global will be focused on providing world class products and services in the medical MJ, Hemp, insurance, and the sky is the limit possibilities throughout the globe.
FITX Announces Record Date For Spin-Off of XXX MMJ GLOBAL
Record and Distribution Dates Announced in Anticipation of Creative Edge Nutrition’s Spin-off into XXX Global
Madison Heights, MI September 12, 2014 – FITX® (Nasdaq: FITX, a leading global provider, today announced that its board of directors has established a record date for the spin-off of its Dealer Services business unit, recently named XXX Global.
FITX anticipates that the two companies will be separated through a distribution of XXX Global shares after the market close on September 30, 2014 to FITX shareholders of record after the market close on September 24, 2014. No action or payment is required by FITX shareholders to receive the common stock of XXX Global in the distribution. Shareholders who hold FITX common stock on the record date will receive a book-entry account statement reflecting their ownership of XXX Global common stock, or their brokerage account will be credited for the shares.; The share distribution ratio for the spin is expected to be announced early next week.
For U.S. federal income tax purposes, FITX’s U.S. shareholders (other than those subject to special rules) generally should not recognize gain or loss as a result of the distribution of XXX Global shares, except with respect to any cash received in lieu of fractional shares. FITX shareholders are urged to consult with a tax advisor with respect to the tax consequences of the XXX Global spin-off.
FITX expects that XXX Global common stock will begin “when-issued” trading on September 22, 2014 in the public market on the NASDAQ under the symbol “ABCD” and will continue through the distribution date. FITX also anticipates that “regular way” trading of XXX Global will commence on the first trading day following the distribution date, October 1, 2014, under the symbol “ABCD”.
Beginning on September 22, 2014, and through the distribution date, it is expected that there will be two ways to trade FITX common stock - either with or without the right to receive shares of XXX Global common stock. Shareholders who sell their shares of FITX common stock in normal trading on the NASDAQ under the symbol “FITX” after the record date and on or prior to the distribution date will be selling their right to receive shares of XXX Global in connection with the distribution. It is anticipated that shares of FITX common stock will also trade without the right to receive the XXX Global distribution during that period under the symbol “FITXU”. Investors are encouraged to consult with their financial advisors regarding the specific implications of buying or selling FITX common stock on or before the distribution date.
The planned spin-off of Dealer Services into XXX Global will allow both FITX and XXX Global the opportunity to focus on their respective industries. FITX will remain focused on enhancing its position as a global nutritional provider, while XXX Global will be focused on providing world class products and services in the medical MJ, Hemp, insurance, and the sky is the limit possibilities throughout the globe.
