Simulations Plus Announces Stock Dividend
Simulations Plus, Inc. (AMEX: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, announced today that its Board of Directors has approved a two-for-one split of the Company’s common stock. The total number of authorized shares remains at 20 million. Each shareholder of record at the close of business on the record date of Monday, September 24, 2007, will receive a stock dividend certificate of one additional share for every outstanding share held on the payment date of Monday, October 1, 2007, with fractional shares rounded up to the next whole share. Trading will begin on a split-adjusted basis on the ex-dividend date of October 2, 2007. In accordance with the terms of the Company’s Stock Option Plans, employees with stock options will benefit from the split by receiving twice the number of shares at one-half the exercise price for options granted prior to the record date.
Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: “This dividend forward split will result in the total number of outstanding shares, including all possible options that may eventually be vested, of slightly over 19 million shares, with the public float increasing from about 4.16 million shares to about 8.3 million shares. We believe that increasing the number of shares in the public float is likely to increase liquidity and narrow the typical trading range for our stock, although there can be no assurances that either of these will happen. The board of directors has decided that a stock dividend is appropriate at this time because of our demonstrated sustained growth and our expectation that this will continue.”