From your link:
"If a company no longer has any retained earnings on its balance sheet, then it typically can't pay dividends except in extraordinary circumstances."
I assume this is an extraordinary circumstance since they have closed on a company that does have revenue and net income. Of course, that does not wipe out GNBT's long term deficient, but they had to get approval from the exchange to do this. Maybe it has to do with the uplisting they are looking to complete as well since you should have at least 25M+ outstanding shares to have some liquidity for the national market.
"If a company no longer has any retained earnings on its balance sheet, then it typically can't pay dividends except in extraordinary circumstances."
I assume this is an extraordinary circumstance since they have closed on a company that does have revenue and net income. Of course, that does not wipe out GNBT's long term deficient, but they had to get approval from the exchange to do this. Maybe it has to do with the uplisting they are looking to complete as well since you should have at least 25M+ outstanding shares to have some liquidity for the national market.
Quote:Question for the board?
Can a publicly traded company declare a dividend, cash or additional shares of stock, if there are no retained earnings?
Generex Biotechnology Corp. (GNBTQ) Stock Research Links
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.
