Amendment seeks to empower the company to issue an unlimited number of ordinary shares

The board of Salada Foods Jamaica Limited has approved an amendment to one of its two stock split resolutions.

The resolution in question, approved by the board at its meeting held on January 21, 2021, allows for the maximum number of shares that the company is entitled to issue to be increased from 500 million to 1.5 billion shares.

This will be done by the creation of an additional one billion shares. However, at its meeting held last Friday February 19, 2021, the board proposed and approved an amendment to the resolution that the maximum number of shares that the company is entitled to issue be increased from 500 million shares to an unlimited number of ordinary shares.

No amendment on the second stock split resolution

No amendment was sought for the second resolution, which mandates that Salada subdivide each of the issued ordinary shares in the company into 10 ordinary shares for every one held, thus making a 10-to-one stock split, which is to take place at the close of business on Wednesday March 31, 2021.

A stock split is a corporate tool in which a company divides its existing shares into multiple shares. Basically, companies choose to split their shares so they can lower the trading price of their stock to a range deemed comfortable by most investors and increase the liquidity of the shares.

The determination of Salada’s stock split was supposed to have taken place last March but the board decided to postpone it until next month, one year after the initial announced period. Salada Foods Jamaica is the largest coffee processing company in Jamaica and has the only soluble coffee processing plant in the Caribbean.

It is the home of the renowned Jamaica Mountain Peak brand of coffees and instant teas. The company also produces a range of quality and affordable household products including juices, canned beans, a delicious cocoa mix and more.