XBiotech Stock Increased 7.41%: Why It Happened

By Amit Chowdhry ● Jul 7, 2021
  • The stock price of XBiotech Inc (NASDAQ: XBIT) increased by 7.41%. This is why it happened.

The stock price of XBiotech Inc (NASDAQ: XBIT) increased by 7.41%. Investors appear to be responding positively to the company’s Board of Directors declared an extraordinary cash dividend of approximately $2.50 per share, or up to an aggregate of $75 million, to holders of its common stock. And this one-time special dividend will be payable on July 23, 2021 to stockholders of record at the close of business on July 16, 2021.

The company said it cannot guarantee any future dividends. And the declaration and payment of future dividends, if any, will be at the sole discretion of XBiotech’s Board of Directors based on its consideration of various factors, including the company’s operating results, financial condition, and anticipated capital requirements.

KEY QUOTE:

“XBiotech’s proven ability to develop highly valued drug candidates, revenue from contract operations, judicious deployment of operating capital, absence of debt, and very significant emerging opportunities in our pipeline, has created the balance sheet flexibility that enables us to provide shareholders this dividend.” 

— John Simard, chairman and CEO of XBiotech

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.