Grifco Inc (GFCI)

[jtomm]

Was The Dividend Announcement Valid?

My guess would be no. Why? A payment date was never given (might also be called the distribution date or delivery date). This is one of the requirements of a dividend announcement. (The record date is not the same as the payment date.)

It's kind of like if I say I'll buy your house for $1 million, but don't say on what date I'll deliver the money. Is that a contract at all? There's no meeting of the minds as to when it's going to take place. Maybe I meant 50 years from now.

Also, the company is making it sound like the record date is the ex-dividend date. It is not.

A company never determines the ex-div date. The NASD always determines the ex-div date. They have clear rules. The record date is never the ex-div date.

My guess is the company knows all of this full well, but will later claim to have been confused. More delay time will then be needed to "straighten things out."