On the 15th, SNT Motiv announced that during its board meeting on the 14th, it decided to allocate one additional common share for every existing share, resulting in a 100% stock dividend.
The record date for the allocation of new shares is set for the 31st of this month, with shareholders holding SNT Motiv shares on the 23rd receiving one additional common share for each existing share. The scheduled listing date for the newly issued shares is the 26th of next month.
With this decision, the number of shares issued will be 11,917,136, increasing the total number of outstanding shares to 26,542,272 after the stock dividend. During this stock dividend, the 2,706,000 treasury shares held by SNT Motiv will be excluded from the allocation, resulting in a decrease in the treasury share ratio from 18.5% to 10.2% due to a cancellation effect.
A stock dividend occurs when a corporation allocates newly issued shares to shareholders without any compensation in the process of increasing its capital. Implementing a stock dividend increases the number of shares in circulation, promotes active transactions, and is viewed in the market as a signal of the corporation's financial soundness, making it a typical shareholder-friendly policy.
An SNT Motiv representative noted, "We decided on a 100% stock dividend to return profits to shareholders and enhance shareholder value by utilizing our capital surplus based on a sound financial structure. We expect an increase in transaction volume as the previously insufficient number of shares in circulation increases," and added, "We are not considering any opinions regarding partitioning and will continue to focus on protecting shareholder rights."