Converted Organics announced yesterday that it would grant shareholders a dividend of 3 shares of common stock for each 20 shares of common stock. Dividends will be paid to all shareholders who have at least 20 shares of the stock on November 17, 2008 and will be paid December 1st, 2008.

According to Edward Gildea, President of Converted Organics,

"Converted Organics believes that the current price of its common stock does not reflect the long-term value of the Company, and that the recent turmoil in the world’s capital markets has had a burdensome, negative impact on the shareholders of the Company. Therefore, the Board of Directors has authorized the Company to issue this special 15 percent dividend to our shareholders.”-MSN Money

Additionally, per the MSN Money article that described the company’s offer, stockholders with warrants can expect the following:

Holders of Converted Organics’ Class A warrants who elect to hold the shares acquired upon exercise of the warrant until the record date for the dividend will have an effective exercise price for their shares of common stock of $5.61. The current effective price is $6.46 per share of common stock, taking into account prior stock dividends.

This 15 percent special stock dividend will effectively reduce the exercise price of Converted Organics’ Class B warrants to $7.48, as the number of shares to be received upon exercise of one Class B Warrant will be 1.47 shares of common stock.