Unanimous decision taken at last week’s virtual AGM

Shareholders have given the green light for Salada Foods Jamaica Limited to effect its 10:1 stock split, scheduled to take place on next Wednesday March 31.

Shareholders attending last week’s 56th annual general meeting (AGM) hosted virtually unanimously approved three resolutions to effect the stock split, which was first announced in February 2020 but has been delayed until now due to COVID-19. The three resolutions are:

1. That the maximum number of shares that the company is entitled to issue be and is hereby increased from 500,000,000 shares of no par value to an unlimited number of ordinary shares, such shares to rank pari passu with the existing shares in issue.

2. That each of the issued ordinary shares in the capital of the company be subdivided into 10 ordinary shares with effect from the close of business on Wednesday, March 31, 2021, resulting in the total issued capital of the company being increased from 103,883,290 ordinary shares of no par value to 1,038,832,900 ordinary shares of no par value.

3. That all the shares in the company which are not yet issued be and is hereby converted into stock units when issued and fully paid.

The shareholders in attendance by majority vote also approved as special business, a resolution with amendments to various articles of the company’s articles of incorporation. This resolution allows for Salada’s AGMs to also be held virtually through electronic means.

Last Thursday’s AGM was held in accordance with a court order of the Supreme Court of Jamaica, dated February 18, 2021, which permits the holding of shareholders’ meetings virtually. The determination of Salada’s stock split was supposed to have taken place last March but the board decided to postpone it until month end, more than one year after the initial announced period.

Reasons for stock split

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.

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.