FingerMotion Inc. (NASDAQ: FNGR) has announced that its Board of Directors has preliminarily approved a dividend in kind of warrants to purchase common shares. The final terms, record date, and payment date for the dividend warrants will be determined by a subsequent Board resolution, according to the company's announcement. The company expects to issue the dividend warrants under a new warrant agreement with an institutional agent.
FingerMotion plans to file a Form S-3 registration statement with the Securities and Exchange Commission to register both the warrants and the underlying common shares. The company is also seeking approval from Nasdaq to list the warrants for trading on the exchange. FingerMotion indicated that the formal declaration of the dividend is anticipated to occur following completion of the SEC review process. The timing remains subject to market conditions and other factors. Additional details about the dividend can be found in the full press release available at https://ibn.fm/Ij19G.
The warrant dividend represents a significant development for FingerMotion shareholders as the company continues to evolve its technology platform. FingerMotion operates primarily in China's mobile payment and recharge market, where it has been building a growing user base. The company's strategic vision involves developing additional value-added technologies to market to its expanding user community. FingerMotion's long-term strategy focuses on rapidly growing its user base through organic means and developing this growth into an ecosystem of highly engaged users utilizing its innovative applications.
This approach aims to strategically position the company to onboard larger customer bases. The company eventually hopes to serve over 1 billion users in the China market and potentially expand its business model to other regional markets. Investors seeking the latest news and updates relating to FNGR can access the company's newsroom at https://ibn.fm/FNGR. The announcement of the warrant dividend comes as FingerMotion continues to execute on its growth strategy in the competitive Chinese mobile technology market, where digital payment platforms have seen substantial adoption in recent years.
