Generex Biotechnology Reiterates 1:1 Stock Dividend for Clarity in the Market and Provides Details on Capital Structure
GlobeNewswire•August 23, 2019
Filing of up-list application to Nasdaq
Record date for dividend is August 30, 2019
Pay date for 1:1 shareholder stock dividend set for October 29, 2019
Ex-dividend date for 1:1 shareholder stock dividend set for October 30, 2019
Effect of Dividend on GNBT Shares Outstanding
-- Retiring 21 million “Pool Shares”
-- Exclusion of insiders, noteholders, pool holders, acquisitions
MIRAMAR, Fla., Aug. 23, 2019 (GLOBE NEWSWIRE) -- Generex Biotechnology Corporation (www.generex.com) (GNBT) today provided additional guidance for investors on the company’s plans for the GNBT up-list to Nasdaq and the payment of the 1:1 share dividend to shareholders.
Due to high call volume and ongoing confusion in the market related to the upcoming 1:1 stock dividend, we would like to reiterate the terms of the dividend to be paid to shareholders. To be clear, shareholders of record on August 30, 2019 will be eligible to receive the 1:1 stock dividend. On October 29th, shareholders will receive one share of GNBT for each share owned, however, certain major shareholders have waived their rights and are excluded from receiving the dividend, including note holders, management, the pool holders, and those who received GNBT stock as part of an acquisition. Special rules applying to large stock dividends will make the ex-dividend date is on October 30, 2019.
After the August 30th Record Date, anyone who sells their stock will lose the dividend and will instead receive a pay-due bill that will transfer the dividend to the buyer of the shares. Shareholders must hold their shares until the October 30 Ex-Dividend Date to keep the dividend.
Additionally, the roughly 21 million pool shares will be retired to the Generex corporate treasury. If any shareholder with a waiver agreement sells stock between now and the pay date, the dividend will go to the buyer of their stock, a pay-due bill will be attached to the stock and the seller will be solely responsible for covering the dividend on the pay date; Generex will not pay the pay-due bill.
To reiterate, Generex has paid their application for the up-listing to Nasdaq and has engaged Donahue and associates to spearhead the listing process. Generex is confident of achieving the GNBT up-listing before the dividend is paid.
Joseph Moscato, Generex President & Chief Executive Officer stated, “The 1:1 stock dividend that is given to our shareholders as a reward for allowing us to reorganize the company. The focus on building value for shareholders is clearly demonstrated by our dedicated management, our subsidiary partners, and long-time investors who have all waived the dividend. Additionally, we are retiring the pool shares, which alone represent roughly 33% of the currently outstanding shares. With these actions, Generex has significantly reduced the dilutive effects of the dividend because we believe in our new model for healthcare designed to provide end-to-end solutions for physicians and patients.
GlobeNewswire•August 23, 2019
Filing of up-list application to Nasdaq
Record date for dividend is August 30, 2019
Pay date for 1:1 shareholder stock dividend set for October 29, 2019
Ex-dividend date for 1:1 shareholder stock dividend set for October 30, 2019
Effect of Dividend on GNBT Shares Outstanding
-- Retiring 21 million “Pool Shares”
-- Exclusion of insiders, noteholders, pool holders, acquisitions
MIRAMAR, Fla., Aug. 23, 2019 (GLOBE NEWSWIRE) -- Generex Biotechnology Corporation (www.generex.com) (GNBT) today provided additional guidance for investors on the company’s plans for the GNBT up-list to Nasdaq and the payment of the 1:1 share dividend to shareholders.
Due to high call volume and ongoing confusion in the market related to the upcoming 1:1 stock dividend, we would like to reiterate the terms of the dividend to be paid to shareholders. To be clear, shareholders of record on August 30, 2019 will be eligible to receive the 1:1 stock dividend. On October 29th, shareholders will receive one share of GNBT for each share owned, however, certain major shareholders have waived their rights and are excluded from receiving the dividend, including note holders, management, the pool holders, and those who received GNBT stock as part of an acquisition. Special rules applying to large stock dividends will make the ex-dividend date is on October 30, 2019.
After the August 30th Record Date, anyone who sells their stock will lose the dividend and will instead receive a pay-due bill that will transfer the dividend to the buyer of the shares. Shareholders must hold their shares until the October 30 Ex-Dividend Date to keep the dividend.
Additionally, the roughly 21 million pool shares will be retired to the Generex corporate treasury. If any shareholder with a waiver agreement sells stock between now and the pay date, the dividend will go to the buyer of their stock, a pay-due bill will be attached to the stock and the seller will be solely responsible for covering the dividend on the pay date; Generex will not pay the pay-due bill.
To reiterate, Generex has paid their application for the up-listing to Nasdaq and has engaged Donahue and associates to spearhead the listing process. Generex is confident of achieving the GNBT up-listing before the dividend is paid.
Joseph Moscato, Generex President & Chief Executive Officer stated, “The 1:1 stock dividend that is given to our shareholders as a reward for allowing us to reorganize the company. The focus on building value for shareholders is clearly demonstrated by our dedicated management, our subsidiary partners, and long-time investors who have all waived the dividend. Additionally, we are retiring the pool shares, which alone represent roughly 33% of the currently outstanding shares. With these actions, Generex has significantly reduced the dilutive effects of the dividend because we believe in our new model for healthcare designed to provide end-to-end solutions for physicians and patients.
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