FingerMotion Announces Preliminary Director’s Approval of Dividend Warrant on Terms to be Fixed by Further Resolution of the Board of Directors
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Insights
The announcement of FingerMotion, Inc.'s intention to issue dividend warrants is a strategic decision that warrants attention from a financial perspective. Dividend warrants are financial instruments that provide shareholders the right, but not the obligation, to purchase additional shares at a predetermined price. This move can be interpreted as a signal of the company's confidence in its future prospects, potentially leading to increased investor interest and a positive impact on the stock's liquidity.
From an investor's standpoint, the issuance of such warrants could be seen as a value-added proposition, as it offers an opportunity to acquire more shares potentially below market value. However, the impact on the stock price can be two-fold. In the short term, there might be a dilutive effect on the shares as investors anticipate the increase in the number of shares outstanding. In the longer term, if the company's performance aligns with positive expectations, this could lead to capital appreciation for shareholders who exercise their warrants.
It is crucial to consider the terms of the warrants, such as the exercise price and expiration date, which are yet to be determined by the Board. These terms will significantly influence the attractiveness of the warrants to shareholders. Furthermore, the registration of the warrants with the SEC and the listing on the Nasdaq Capital Market are procedural steps that ensure regulatory compliance and provide a framework for the warrants' tradeability.
From a market research standpoint, the actions of FingerMotion, Inc. reflect a strategic effort to engage with their shareholders and potentially enhance shareholder value. The decision to issue dividend warrants instead of traditional cash dividends suggests a focus on reinvestment and growth, which may appeal to growth-oriented investors. It also indicates that the company may prefer to retain cash for operational needs or future investments.
The market's reception of this news will likely depend on FingerMotion's current market performance, sector outlook and the perceived growth opportunities. Investors will also be evaluating the company's past performance and management's ability to execute on its strategic vision. If the market views the company's prospects favorably, the announcement could lead to a positive sentiment and an uptick in trading volume as investors position themselves to benefit from the potential upside.
However, it is essential to monitor the market's reaction once the terms of the Dividend Warrants are announced. Market conditions at the time of the actual issuance will play a critical role in determining the immediate impact on the company's stock. Additionally, the broader economic environment, including interest rates and investor sentiment towards the tech sector, will influence the overall effectiveness of this strategic move.
The legal implications of FingerMotion's announcement are grounded in compliance with the U.S. Securities Act of 1933. By filing a registration statement on Form S-3 with the SEC, the company is adhering to the necessary regulatory requirements to offer securities to the public. This step is fundamental in ensuring transparency and protecting investors by providing them with access to essential information regarding the Dividend Warrants.
The company's adherence to Rule 135 under the U.S. Securities Act is indicative of its commitment to follow due process in communicating corporate actions that involve the offering of securities. It is crucial for the company to manage this process meticulously to avoid any legal complications that could arise from non-compliance with securities laws. This includes the accurate and timely disclosure of information, which will be scrutinized by both the SEC and potential investors.
The legal framework for such corporate actions is designed to maintain market integrity and investor confidence. As such, the successful navigation of the regulatory landscape is not only a legal requirement but also contributes to the company's reputation and the trust placed in it by the investment community.
SINGAPORE, SINGAPORE / ACCESSWIRE / January 24, 2024 / FingerMotion, Inc. (NASDAQ:FNGR) (the "Company" or "FingerMotion"), today announces that the Company's Board of Directors has preliminarily approved a dividend in kind (the "Dividend") of warrants (each, a "Dividend Warrant") to purchase shares of the Company's common stock (each, a "Common Share") to holders of the Company's common stock.
The terms of the Dividend Warrants, and the record and payment dates for the Dividend, will be fixed by further resolution of the Board of Directors. The Dividend Warrants are anticipated to be created and allotted pursuant to a warrant agreement to be entered into between FingerMotion and a suitably qualified institutional warrant agent. The Company intends to file a registration statement on Form S-3 with the United States Securities and Exchange Commission (the "SEC") for the purpose of registering the Dividend Warrants and the underlying Common Shares under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and to apply to The Nasdaq Stock Market LLC for the listing of the Dividend Warrants and the underlying Common Shares on the Nasdaq Capital Market. The declaration of the Dividend is expected to take place after the SEC completes its review process, subject to market and other conditions.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the U.S. Securities Act. This announcement is being issued in accordance with Rule 135 under the U.S. Securities Act.
Company Contact:
FingerMotion, Inc.
For further information e-mail: info@fingermotion.com
Phone: 718-269-3366
Investor Relations Contact:
Skyline Corporate Communications Group, LLC
Scott Powell, President
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: info@skylineccg.com
Safe Harbor Statement
Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States securities laws. These statements relate to the Company's plans to declare a Dividend Warrant, to file a registration statement on Form S-3 with the SEC in respect thereof, and to apply to list the Dividend Warrants and the underlying Common Shares on the Nasdaq Capital Market. We have based these forward-looking statements on our current expectations about future events. While we believe these expectations are reasonable, such forward-looking statements are inherently subject to risks and uncertainties, many of which are beyond our control. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. The forward-looking statements included in this release are made only as of the date hereof. For forward-looking statements in this news release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Report Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: FingerMotion
View the original press release on accesswire.com
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