Rather than making regular cash pay-outs, the company wants to be able to sanction a “dividend in specie” that would allow it to distribute its holding in SkinBioTherapeutics PLC (LON:SBX).
After spinning off the business, which is focused on treatments that use and modify the microbiome that resides on the skin, OptiBiotix still holds 41.9% of the separately listed firm.
The nuts and bolts of what is essentially a procedural matter are as follows: a proposed capital reduction will lead to the cancellation of OptiBiotix’s share premium account.
This will then create distributable reserves that will allow it to pay dividends either in cash, or in specie “should circumstances in the future make it desirable to do so”.
Distributing shares in SkinBioTherapeutics means OptiBiotix is not forced to sell stock in the market and then make a cash return.
“The ability to make dividend payments provides the flexibility to consider paying a 'dividend in specie' to the company's shareholders of shares it holds in SkinBioTherapeutics, should it be appropriate to do so,” said Opti’s chief executive Stephen O'Hara.
“This is part of our strategy of building value across OptiBiotix divisions and where possible releasing value back to shareholders."
The company is a specialist in the emerging area of life science that involves the gut microbiome and is developing functional foods and treatments that help lower cholesterol, aid weight loss and which could help prevent diabetes.