MARKHAM, ON, Dec. 21, 2018 /CNW/ - Enghouse Systems Limited (TSX:ENGH.TO - News) ("Enghouse") announced today that its board of directors has approved a 2-for-1 share split (the "Share Split") of its outstanding common shares (the "Common Shares"). The Share Split will be implemented by way of a share dividend whereby shareholders of record at close of business on January 22, 2019 (the "Record Date") will receive, on January 25, 2019 (the "Payment Date") one Common Share for each Common Share held as of the Record Date. There were 27,301,012 Common Shares outstanding as of December 20, 2018. Adjusting for the Share Split, as of December 20, 2018, there would be 54,602,024 Common Shares outstanding.
In accordance with the applicable rules of the Toronto Stock Exchange (the "TSX"), the Common Shares will trade on a due bill basis from January 21, 2019 to the Payment Date (i.e. January 25, 2019), inclusive. A due bill is an entitlement attached to the listed securities undergoing a material corporate action such as the Share Split. In this instance, the entitlement is to the additional Common Shares issuable as a result of the Share Split. Any trades that are executed on the TSX during the due bill period will be flagged to ensure purchasers receive the entitlement to the additional Common Shares issuable as a result of the Share Split. The Common Shares will commence trading on an ex-dividend basis on January 28, 2019 (as of which date the Commons Shares will no longer have the attaching entitlement to the additional Common Shares). The due bill redemption date will be January 29, 2019.
Shareholders do not need to take any action. Enghouse's transfer agent, TSX Trust Company, will send registered shareholders a physical share certificate representing one additional Common Share for each Common Share held as of the Record Date. Non-registered shareholders will have their brokerage accounts automatically updated to reflect the Share Split.
The Share Split is not expected to constitute a taxable transaction for Canadian tax purposes. Shareholders are advised to contact their tax advisers for further information. The Share Split will not dilute shareholders' equity. All share and per share data will reflect the Share Split for periods following its completion.
Enghouse Systems Limited is a leading global provider of enterprise software solutions serving a variety of vertical markets. Its strategy is to build a more diverse enterprise software company through strategic acquisitions and managed growth within its business sectors: Contact Center, Networks (OSS/BSS) and Transportation/Public Safety. Enghouse shares are listed on the Toronto Stock Exchange (TSX:ENGH.TO - News). Further information about Enghouse is available at www.enghouse.com.
SOURCE Enghouse Systems Limited
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