Online retailer Overstock.com has just revealed it intends to pay a dividend to its shareholders in digital shares.
The company's board of directors has agreed that its digital dividend will be paid at a rate of 1:10, which means that one Series A-1 digital share will be issued for every ten ordinary shares.
If we consider that about 40,000 investors own around 37 million shares of the company, then the firm will have to issue approximately 3.7 million digital shares.
It has been reported that the dividend record date will be September 23, while it will not be transferred to the investors' wallets til mid-November.
The company has highlighted that these digital shares have not been registered under the U.S. Securities Act of 1933, therefore, they can only be traded through a Dinosaur Financial Group brokerage account.
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