Astronics Corp. will give its shareholders three additional shares of the East Aurora aircraft electronics and lighting manufacturer’s stock for every 20 that they now own as part of a move to put more shares into circulation and make its stock more attractive to investors.
The 15 percent stock dividend will not increase the value of an Astronics shareholder’s investment because the move will reduce the price of each share of the company’s stock by 15 percent.
The stock dividend will be paid to shareholders of both Astronics’ Class A and Class B shares. The dividend will be paid in Class B shares, which convert to Class A shares if they are traded and have 10 times the voting power of Class A shares.
The stock dividend will increase the number of Class B Astronics shares outstanding to 9.5 million from the current 8.2 million. The company has 19.4 million Class A shares.
Shareholders will receive cash for any fractional shares.
The stock distribution is the tenth that Astronics has made since 1988 and the fifth in the last five years. Astronics shares have risen by 10 percent this year after rising by more than 15 percent during 2015.
The additional shares will be distributed Oct. 11 to shareholders of record on Oct. 6.