Company authorised share capital to be increased

The board of food manufacturer Salada Foods has approved a 10 to one stock split, which is schedule to take place at the close of business on Wednesday, March 31, 2021.

A stock split is a corporate action 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 board at its last meeting on January 21 approved two resolutions paving the way for the stock split to take place. The first resolution approved gave permission for the board to increase the maximum number of shares that the company is entitled to issue.

This was increased from 500 million to 1.5 billion, representing a threefold increase. This was done through the creation of an additional one billion ordinary shares of no par value.

Second resolution passed

The second resolution approved was to subdivide each of the issued ordinary shares in the company into 10 ordinary shares for every one held. This will result in the total issued shares capital of the company being increased from 103,883,290 ordinary shares of no par value to just over a billion ordinary shares of no par value.

The determination of the stock split was supposed to have taken place last March but the board decided to postpone its determination of the stock split at an electronic board meeting, held on Thursday, March 19 at its Bell Road, Kingston 11 head office.

Salada Foods Jamaica is the largest coffee processing company in Jamaica and 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 include juices, canned beans, a delicious cocoa mix and much more.