10 to 1 stock split for Derrimon

Staff at Derrimon Trading.

Investors continue to be poorly served in a number of cases in the Jamaica Stock Market with inconsistent observance of rules and regulation.
Under the Jamaica Stock Exchange rules a listed company is to report to the JSE ahead of a meeting to consider a divined or changes to the share capital structure and to report within 48 hours of the meeting, the decision reached.
Derrimon Trading directors are recommending to shareholders a stock split but there has been no notice on the JSE website about the consideration at a board meeting or the results of the meeting. Yet in the annual report the company places a resolution to effect a split of the stock.
According to the annual report the company proposes to increase of authorised share capital from 800,400,000 shares to 8,200,400,000 shares by the creation of an additional 7.4 billion ordinary shares and to sub-divide the issued share capital of the Company into 10 ordinary shares with effect from the close of business on August 22, resulting in the total issued shares being increased from 273,336,067 to 2,733,360,670 ordinary shares. The company last traded at $16 with the bid closing at $18.40 on Tuesday.
Derrimon reported strong first quarter results gains from $35 million to $52 million or 21 cents per share to March this year.

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