Jamaican lighting and energy company FosRich Company has sought to clarify the date for its 10:1 stock split.

In an advisory yesterday (July 21), FosRich explained that the ex-stock split date approved at the company’s Annual General Meeting (AGM), held on July 12, 2022, is July 26.

However, in an advisory published on the Jamaica Stock Exchange website on July 14, it was indicated that the stock split is to be effected from the close of business on July 27.

A stock split allows a company to break each existing share into multiple new shares without affecting its market capitalisation.

By dividing a company’s shares into multiples, this in turn lowers the share price and increases the number of shares available to trade. With the stock split, FosRich’s total issued share capital will be increased from 502,275,555 ordinary shares to 5,022,755,550 ordinary shares.

The AGM also authorised the management and board of FosRich to undertake a capital raise in the coming months either in the form of a Right Issue to existing stockholders and/or an additional public offer (APO) of shares to the public.

Further, the AGM gave authorisation for FosRich to issue up to 126,000,000 ordinary shares by way of the Rights Issue to existing stockholders, and/or an APO and for the board to determine in their discretion any terms and conditions relating to the Rights Issue and/or APO.