Canadian apparel retailer Gildan Activewear said it has completed the implementation of its previously announced two for one share split of its outstanding common shares by way of a share dividend.
The common shares started trading on a split basis at the start of business from March 30, 2015, a press release from Gildan Activewear informs.
On March 27, 2015, each shareholder of record of the Company at the close of business on March 20, 2015, received one additional common share for each common share owned.
As a result of the completion of the two-for-one share split, the number of outstanding common shares has doubled to approximately 242 million.
Gildan’s transfer agent will send to all registered shareholders a notice under the direct registration system indicating the number of additional common shares that they received as a result of the share dividend.
These additional common shares are held in book entry form and registered electronically in the transfer agent’s recordkeeping system, unless a physical share certificate is requested by the registered shareholder.
Beneficial owners of common shares held through a brokerage account will have their accounts automatically updated to reflect the share dividend.
For Canadian income tax purposes, the aggregate amount of the share dividend is nominal. Accordingly, there will be no Canadian income tax payable by the shareholders with respect to the share dividend.
In addition, there will be no unfavourable US federal income tax consequences for shareholders and also, the share dividend will not dilute shareholders equity.
According to Gildan, all share and per share data will be adjusted to reflect the share split and in addition, its compensation plan as well as common shares repurchase program will be adjusted to reflect the share split.
Gildan is a leading supplier of quality branded basic family apparel, including t-shirts, fleece, sport shirts, underwear, socks, hosiery and shapewear.
The Company sells its products under a diversified portfolio of company-owned brands, including the Gildan, Gold Toe, Anvil, Comfort Colors, Secret, Silks and Therapy Plus brands.
The Company also has the US sock license for Under Armour, and licenses for Mossy Oak and New Balance brands.
The Company distributes its products in printwear markets in the US and Canada, as well as in Europe, Asia Pacific and Latin America.
The Company also markets its products to a broad spectrum of retailers in the US and Canada and alongside also manufactures for select leading global athletic and lifestyle consumer brands.
Gildan owns and operates vertically-integrated, large-scale manufacturing facilities which are primarily located in Central America and the Caribbean Basin.
It has approximately 43,000 employees worldwide and is committed to industry leading labour and environmental practices in all of its facilities.
