Replies to post #193395 on KAT Exploration Inc (KATX)

[B402]

Here Ya go Tink...Stock different than Cash...

Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).

If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid.

http://www.sec.gov/answers/dividen.htm

Weeeeeeeeeeeeeeeeeeee

[silvergun]

This seems correct to me. I've been in other pennies that have divi shares. And even if I sold after the date of record for divi distribution I still got the divi shares in my account. It really wouldn't be fair any other way.

With Katx the 1st date it trades without the dividend is when the sec declares this s1 effective and when the divi shares are sent out to shareholders. That's an uncertain date in the future. So I do think we have to worry about that date. The date that matters is the date of record as announced by the company.

[Dubb10]

The Ex-dividend date is not known yet since the SEC hasn't evaluated the S-1 yet and declared it effective.

Spin-Off Date:

We currently anticipate that the Spin-Off will occur as soon as practicable after the date that the registration statement, of which this prospectus forms a part, is declared effective.