Food and animal safety specialist Neogen (NASDAQ: NEOG ) announced today it was splitting its stock 3-for-2, which means shareholders will receive one additional share of stock for each two shares owned.
Neogen has approximately 24.3 million shares outstanding, and after the split it will have approximately 36.5 million shares outstanding. All fractional shares resulting from the split will be exchanged for cash at the post-split price at the market's close on Oct. 15.
The stock price has jumped 50% over the past year, and Neogen CEO and Chairman James Herbert said the 3-for-2 split reflects the board of directors' confidence in the company's long-term growth.
"We are very pleased to be able to enhance the availability and liquidity of our shares to allow more participation in Neogen's success," Herbert said, "while at the same time rewarding our large number of loyal long-term investors."
The stock split will be effected in the form of a stock dividend and will be paid on Oct. 30 to shareholders of record as of the close of business on Oct. 15.
This is the fourth stock dividend Neogen has declared, with the last time being a 3-for-2 in December 2009.