Oxford Lane Capital is undergoing a significant reassessment by investors following a major corporate action that has reshaped its equity structure. This strategic move establishes a fresh foundation for valuing the company and determining its future dividend distributions.
Establishing a New Valuation Benchmark
As part of its restructuring initiative, the company’s management has provided an initial, unaudited estimate for the Net Asset Value (NAV) per share. The estimated NAV is projected to be between $20.02 and $20.22 as of September 8. Oxford Lane has clarified that this is a preliminary figure which has not undergone a full quarterly financial close. Consequently, the official NAV for the quarter ending September 30 may differ from this current estimate.
A Drastic Restructuring via Reverse Split
The core of this transformation is a substantial 1-for-5 reverse stock split. This action consolidated every five pre-existing shares into a single new share. Effective after market close on September 5, trading on a split-adjusted basis commenced on September 8. This fundamental change renders previous per-share metrics outdated, creating a completely new baseline for investor analysis.
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Revised Dividend Schedule Unveiled
A key component of the new framework is a clearly defined schedule for upcoming monthly dividend payments. The company has announced the following distributions:
- A payment of $0.45 per share is scheduled for September 2025.
- The monthly dividend will be $0.40 per share for October 2025.
- A distribution of $0.40 per share is planned for November 2025.
- The company will also disburse $0.40 per share in December 2025.
Despite the significantly reduced number of outstanding shares, the total distribution volume remains consistent with the firm’s historical policy. The record date for the September dividend was September 16, with a payment date set for September 30, 2025.
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