The move by the US Energy Initiatives Corp Inc (OTCMKTS:USEI) to warrant dividend on its common stock will in a major way impact the company’s future as well as its cannabis operations. The two dividends will be in the form of warrants which will help in making the share purchases on the Company’s common stock. And that is according to a statement that was made by the Board of Directors. If all moves according to plan, the warrants are set to be issued on February to the large number of shareholders.
A person familiar with the matter said, “Each shareholder of the Company’s common stock will receive one warrant for every ten shares owned as of the record date. The first warrant will entitle the holder to purchase 10% of their holdings of the Company’s common stock equal to the exercise price per share price on March 30, 2018.”
It is expected that the second warrant will be a major entitlement to the holder since he/she will be in a position to purchase 10% of their overall holdings in the provider’s common stock and that will definitely be at an exercise warrant which will be a representative of about 20% in terms of value.
The perfect case scenario is that instance when a given shareholder has about 1 million shares .Having this number of shares eventually brings to light the possibility of the shareholder moving ahead with the acquisition of an additional 200,000 shares at these prices.
A person well conversant with the latest development has disclosed that these particular warrants will be ongoing over a timeframe of about 3 years and of course that is consideration of the first day of issuance. According to him, the transfer of the shares will be restricted not forgetting that they will be unleashed upon exercise.
Another official working with the company said that all the funds emanating from the warrant were going to play key role in funding the company’s target of rising to become a reporting issuer with SEC affirming that later on they were going unveil more details in line with the warrant.