Shareholders of Honey Bun Limited have given the company permission to increase its authorized capital from 97.5 million shares to 487.5 million shares of no par value.
The shareholders also voted at an extraordinary general meeting on Thursday for the 94,253,390 of issued shares to be increased to 471,266,950, effectively splitting each share into five units.
The changes will take effect on June 1, 2016.
Speaking with Financial Gleaner following the meeting, Honey Bun CEO Michelle Chong said the split is aimed at making more shares available for trading on the Jamaica Stock Exchange, amid concerns that purchasers were having some difficulty getting shares. Honey Bun has traded on the junior stock market since June 2011.
In effect, owners of the stock will hold more shares but the value of their holdings will not change as the stock price will also be split.
“People who are selling might be willing to sell less because they have a larger block, and the people who are buying will buy more because it’s more available,” Chong reasoned.
In the meantime, Honey Bun received Hazard Analysis and Critical Control Point (HACCP) certification on May 23.
Chong says it positions the company to tap overseas markets that Honey Bun has been eyeing for some time.
“It’s like you have a faster car now because you can go to Europe so much easier with a certificate like that,” she told the Financial Gleaner.
The company has released a number of new products on the local market and has been “looking at some new markets and (other) new products,” Chong said, but remained mum on the schedule for roll-out.
“Baked products are normally eaten fresh, so we have to consider how we get into those markets. The fact that we are certified now will really be a big thing for us,” she said.