Cal-Maine Foods’ board of directors has approved a two-for-one stock split for shares of the company’s common stock and Class A common stock, to be effected via a stock dividend. Shareholders will receive one share of stock for each share they hold. The new shares will be distributed on October 31 to shareholders of record at the close of business on October 17.
On July 25, the board recommended to the shareholders of the company that its Amended Certificate of Incorporation be amended to provide for sufficient authorized shares to facilitate a two-for-one split. At the company’s annual meeting of shareholders held October 3 in Jackson, Mississippi, shareholders approved the amendment to increase the number of authorized shares of $0.01 par value common stock to 120,000,000 from 60,000,000 and increase the number of authorized shares of $0.01 par value Class A common stock to 4,800,000 from 2,400,000. The company will continue to pay dividends on all common shares and Class A common shares pursuant to Cal-Maine Foods’ variable dividend policy.Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, stated: “We believe the board’s action to implement a stock split reflects its confidence in Cal-Maine Foods’ prospects for further growth. We expect the stock split will expand the distribution and enhance the market liquidity of the company’s shares and serve to benefit both our current and future shareholders.”