FingerMotion Inc. (NASDAQ: FNGR) announced that its Board of Directors has preliminarily approved a dividend in kind of warrants to purchase common shares, with final terms and record and payment dates to be set by a subsequent Board resolution. The Company expects the Dividend Warrants to be issued under a new warrant agreement with an institutional agent and plans to file a Form S-3 to register the warrants and underlying shares with the SEC, while also seeking Nasdaq listing approval. FingerMotion noted that the dividend declaration is anticipated to occur following completion of the SEC review process, subject to market and other conditions.
This move is significant as it provides existing shareholders with an opportunity to increase their equity stake in the company without additional cash outlay. The dividend warrants, if exercised, could bring additional capital to FingerMotion, supporting its expansion plans. The decision reflects the board's confidence in the company's future prospects and its commitment to rewarding shareholders. FingerMotion is an evolving technology company with a core competency in mobile payment and recharge platform solutions in China. As the user base of its primary business continues to grow, the Company is developing additional value-added technologies to market to its users.
The vision of the Company is to rapidly grow the user base through organic means and have this growth develop into an ecosystem of users with high engagement rates utilizing its innovative applications. Developing a highly engaged ecosystem of users would strategically position the Company to onboard larger customer bases. FingerMotion eventually hopes to serve over 1 billion users in the China market and eventually expand the model to other regional markets.
Investors should note that the dividend declaration is subject to SEC review and Nasdaq approval, and the company will provide updates as the process progresses. The full press release is available at https://ibn.fm/Ij19G. For more information about FingerMotion, visit their newsroom at https://ibn.fm/FNGR.
