The trading price of our common stock (NYSE: EW) has risen significantly over the past several years. Edwards Lifesciences’ Board of Directors has evaluated the data demonstrating that our employees have a high level of interest and ownership in Edwards’ common stock as well as the feedback from those employees that a higher stock price can limit those who desire to invest in Edwards’ stock, especially those who are earlier in their careers. Because of this, we are pleased to perform a three-for-one split of our common stock.
A three-for-one split means that two new shares of stock are issued for each share in existence prior to the split. After the split, the stock price of each share is one-third of the stock price of each share immediately prior to the split but the total monetary value of all the shares is the same as before the stock split.
Here's an example:
Let’s assume that prior to the stock split, a shareholder owned 60 shares of Edwards’ stock and let's also assume that the market price of Edwards’ stock was $200 per share, so that the investment in Edwards was worth $12,000. Immediately after the split, the investor will own 180 shares of stock, but the market price will be $66.67 per share. The investor's total investment value in Edwards remains the same at $12,000 until the stock price moves up or down.
There are several key dates as follows:
- The Record Date, May 18, 2020, determines which stockholders are entitled to receive additional shares due to the split.
- The Distribution Date, May 29, 2020, is the date when the new shares are distributed by Computershare, our stock transfer agent.
- The Ex-Date or Ex-Split Date, June 1, 2020, is the date Edwards’ common stock will begin trading on the New York Stock Exchange at the new split-adjusted price.
Edwards’ stock will begin trading on the New York Stock Exchange at the new split-adjusted price on June 1, 2020, the Ex-Date or Ex-Split Date.
In a three-for-one stock split, the number of shares is tripled. This tripling is accomplished by issuing, or dividending, a similar number of new shares, resulting in three times as many shares as before the split.
The act of splitting the stock doesn’t change the overall value of a shareholder’s position in Edwards stock or Edwards as a company.
This stock split will not change the total value of a shareholder’s investment in Edwards’ stock.
No. Your accounts will be automatically adjusted to appropriately reflect the stock split.
Yes. Edwards had a two-for-one stock split in 2010 and a two-for-one stock split in 2015.
From a U.S. Federal tax standpoint, this is not a taxable event. Individual stockholders who reside outside of the U.S. should consult with their own tax adviser regarding their specific tax circumstances.
In terms of total value, your cost basis would remain the same. On a per share basis, your cost basis would be reduced by one-third, while the number of shares would be tripled.
Shortly after June 1, 2020, Computershare, our stock transfer agent, will mail a statement to registered stockholders who were owners as of May 18, 2020 indicating their split-adjusted shares. If your stock is currently held in a brokerage account, a statement will be sent directly from your broker. No action is required by you.
If your shares are held at Computershare, your split shares will be delivered to your account in electronic entry. If you have questions on your Computershare account, call them directly at 800-446-2617.
If your shares are held in a brokerage account, your split shares will be delivered to your account in electronic entry. Please contact your broker directly for additional information.
KEEP THEM. DO NOT DESTROY THEM. The stock certificates are still valid and should be kept in a safe place, as they are valuable documents.
Yes. Electronic accounts eliminate paper certificate processing and they are more efficient. Additionally, with an electronic account, shareholders don’t have to worry about the safekeeping of their paper certificates or paying costly fees to replace lost certificates.
What is common today in sharekeeping is to move away from paper stock certificates to electronic accounts. In keeping with this practice, Edwards’ shareholders will receive notice that their new shares have been deposited electronically into their account. As was the practice for our 2010 and 2015 split, no new certificates will be distributed with this stock split.
What is common today in sharekeeping is to move away from paper stock certificates to electronic accounts. Electronic accounts eliminate paper certificate processing and they are more efficient. Additionally, with an electronic account, shareholders don’t have to worry about the safekeeping of their paper certificates or paying costly fees to replace lost certificates.
Stockholders are encouraged to hold shares electronically. Contact your broker regarding the potential issuance of certificates.
There will not be a “when issued” market for the new split shares between the May 18, 2020 Record Date and May 29, 2020 Distribution Date.
Edwards’ shares will continue to trade at the pre-split price between the May 18 Record Date and the May 29 Distribution Date. Sellers who sell their shares before the Distribution Date are not entitled to the split shares they would have received by virtue of their being holders on the Record Date; sellers will receive full value for the shares they sell.
No, the par value will remain at $1.00 per share.
There will be no substantive impact to the company’s share repurchase program. Edwards’ share repurchase authorization is for a total dollar amount, not a total number of shares. Our repurchases are based on dollar amounts, which means we will be repurchasing triple the number of shares we would have prior to the split.
Since a stock split has no impact on the total value of the company, Edwards will be no more or less likely an acquisition candidate.
Since a stock split has no impact on the total value of the company, there would be no change in our ability to complete a major transaction.
Please contact the Computershare Customer Service Center at (800) 446-2617. For registered holders who have a non-U.S. address, please call (781) 575-2879.
You should contact your broker.