Carreras’ shareholders approve 10 to 1 stock spilt

The motion to subdivide the existing ordinary shares into 10  was approved by the majority of  Carreras’ shareholders, however not without objections by a few shareholders and a discussion regarding the matter. Management indicated that the main objective of the stock split was to improve the liquidity of the stock.

Additionally, motions confirming the board, auditors and dividend payments were passed.  Shareholders also passed a special resolution to adopt new articles of incorporation for the company.  Management said that the move was to bring the company in line with industry best practises, as well as to improve the efficiency and effectiveness of the board of directors.

The chairman Mr Oliver Homes then procced to address the meeting on the recent performance of the company and his outlook for the company.

Mr Holmes identified the increase in taxes on cigarette for the decline in the company’s revenues and profitability. He also noted that there was a marked increase in the illicit trade of the commodity which further impacts the company’s revenues. Mr Holmes also expressed concern on the rapid and unbalanced development in anti-tobacco regulations around the world, to include a ban on advertising and excessive taxation, to that end he indicated that the company was steadfast in ensuring that the complied with all regulation governing the use, distribution and production of tobacco products. He also reiterated the company’s commitment to engaging the government toward creating sustainable policies on taxation and the illicit trade of the commodity.

After thanking his management team Mr. Holmes ceded the floor to Mr Marcus Steele, Managing Director. Mr Steele took questions from the floor chief among these was the question as to whether the company is looking to diversify as a counter weight to the fall in cigarette sales.

Mr Steele responded in the affirmative indicating that the company is looking to partner with other companies to maximise its extensive distribution network and increase revenue. He also indicated that the company has also launched new brands of cigarette and other cigarette products such as “fiya grabber.” He closed by stating that a tough regulatory environment and its ramification (a decline is sales) is of outmost concern to management.