Waste Connections announced that at its annual and special meeting of shareholders, shareholders passed a special resolution to approve the proposed three-for-two split of the company’s common shares.
Shareholders of record as of the close of business on June 7, 2017 will receive from the company’s transfer agent on June 16, 2017 one additional common share for every two shares held.
The New York Stock Exchange and the Toronto Stock Exchange have will implement “due bill trading” in connection with the share split. A due bill is a financial instrument used to document and identify a seller’s obligation. In this case, any person purchasing common shares commencing at the opening of business two trading days prior to June 7 and ending on June 16, inclusive, will receive a payable right.
Any trades that are executed 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 June 19, 2017. The due bill redemption date will be Wednesday, June 21, 2017.
“We believe the stock split, our fourth such split since our founding almost 20 years ago, demonstrates our continuing commitment to both broaden our shareholder base and enhance liquidity for investors,” Ronald J. Mittelstaedt, Waste Connections chairman and CEO said in a statement.
Existing shareholders do not need to take any action. The company will use the direct registration system to electronically register the common shares issued pursuant to the share split.
Subject to the treatment of fractional shares, the share split is not expected to constitute a taxable transaction for either Canadian federal income tax purposes or U.S. federal income tax purposes.