BioGaia’s Board of Directors revises the dividend proposal
As a consequence of the increased uncertainty coming from the spread of the corona virus, BioGaia's Board of Directors has decided to revise the dividend proposal for the Annual General Meeting 7 May 2020. The revised proposal implies that the ordinary dividend of SEK 3.75 per share will be maintained, while the previously proposed extra dividend of SEK 4.25 per share is cancelled. The revision should be seen as a precautionary measure in the light of increased uncertainty regarding the global economic outlook. The Board of Directors intends to revisit the issue of a potential extra dividend later in the year once a better overview has been obtained regarding the effects of the Covid-19 epidemic.
BioGaia has a strong financial position and good liquidity. As announced 30 March 2020 BioGaia has taken a number of precautions and to date impact on operations has been limited.
Since the Board of Directors submitted its original dividend proposal the business environment has changed significantly. In order to ensure that BioGaia can act from a position of strength in the current turbulent environment, the Board considers that it is prudent to maintain the proposal for the ordinary dividend but withdraw the proposal for an extra dividend.
The Board's previous proposal, which was published in the year-end report 2019, 6 February 2020, entailed an ordinary dividend of SEK 3.75 per share and an extra dividend of SEK 4.25 per share, a total of SEK 8.00 per share.
The Board’s proposal of a provision to the Foundation to Prevent Antibiotic Resistance of SEK 2.8 million, which was published in the year-end report 2019, 6 February 2020, is unchanged.
The Annual General Meeting will take place 7 May 2020.