Generex Biotechnology Provides Guidance on 1:1 Stock Dividend
9:25 AM ET, 07/29/2019 - GlobeNewswire
Filing of up-list application to NasdaqDetails on 1:1 Shareholder stock dividendRecording and transcript of shareholders conference call available at www.generex.com
MIRAMAR, Fla., July 29, 2019 (GLOBE NEWSWIRE) -- Generex Biotechnology Corporation (www.generex.com) (OTCQB:GNBT) today provided 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.
Joseph Moscato, Generex President & Chief Executive Officer stated, “Many thanks to our shareholders and interested parties for participating in our conference call last Thursday, July 25. Since then, I have received a number of calls pertaining to the 1:1 shareholder dividend, so I want to provide some clarity with this release. First, in regard to the timing of the dividend payment, please note that the dividend will be paid the day after Generex is up-listed to the Nasdaq stock exchange. I cannot provide a set date at this time, as our up-list application still needs to go through the review process at Nasdaq, which is expected to take 30 to 60 days.”
“Also, there seems to be confusion in the market based on a question that was asked on the conference call pertaining to dilution and free-trading stock. Please note the dividend will only be paid to shareholders in the float. Insiders will not be taking the dividend, as the management team has waived their rights to the dividend. As recently reported, Generex retired an old debt of $3.1 million that has been carried on the books for 9 years, with the note holder opting to receive the full payment in Generex stock at $2.81 per share; these are restricted shares that will not be unrestricted for at least 6 months and are not eligible for the dividend. Similarly, if any other note holders convert their stock, those shares will also be restricted with the same restrictions. There are no features in any of Generex’s current notes that allow for automatic conversion to free-trading stock, as any such transaction requires a legal process to remove the “restricted” legend. Generex does not have an S1 nor an S3 filed with SEC at this time, which means that no free-trading stock has been granted to date. Plus, as previously reported, I am retiring the roughly 21 million “Pool Shares” such that the effect of the dividend on dilution is significantly minimized.”
“Lastly, it is important to note that if anyone sells their shares between now and the ex-date, which is expected to be two days after the pay date, the dividend shares will be transferred to the purchaser of your shares.”
As I have said since our shareholders permitted us to clean up the company, I am committed to building the value of Generex and sharing our successes with our loyal shareholders through the payment of share dividends. This final 1:1 share dividend that will only be paid to shareholders but not insiders, is another demonstration of that commitment. We look forward to the next chapter of Generex on the Nasdaq national exchange.”
The full recording of the conference call , including the Q&A session is now available on the Generex corporate web site, and the transcript will be available later today.
