Share price for Jamaica Producers Limited (JP) has climbed since the company announced that it will be giving bonus shares to shareholders with existing shares, as of July 12, 2016.

On Monday June 6, share price closed at $44 per unit, up 41 per cent quarter to date.

The market was notified in May of the coming bonanza and responded accordingly, resulting in the share price climb.

The company explained that it had $93,512,003 in credit in capital reserves and would distribute the shares to those who made the register by July 12.

As noted in a Jamaica Stock Exchange advisory, JP said that a resolution had been passed that, “the sum of $93,512,003 being part of the amount standing to the credit of the capital reserves of the company, be applied in making payment in full of 935,120,030 ordinary shares at ten cents each in the capital of the company, such shares to be distributed as fully paid in accordance with Article 113(b) of the Articles of Incorporation.”

The company advised that shares will be distributed among the people who are registered as holders of the ordinary stock in the capital of the company on July 12, 2016, at the rate of five shares for every existing one held by them.

An anonymous broker with whom the Jamaica Observer spoke yesterday said that, having decided to grant bonus shares instead of making a dividend distribution, the company can now use the funds which are in excess of capital requirements to invest in projects on the ground.