SAN MATEO, Calif.--(BUSINESS WIRE)--Deltagen, Inc. (Pink Sheets:DGEN) paid a cash dividend of $0.05 per common share on May 31, 2007 to shareholders of record as of the close of business on May 21, 2007 (“May 2007 Dividend”). The Company also paid in August and November 2007 to certain former shareholders of Xenopharm, Inc. (“XP Holders”) a cash dividend of $0.25 per common share in connection with the concurrent issuances in August and November of 131,754 shares and 981,123 shares, respectively, of the Company’s common stock to the XP Holders (“XP Dividends”). The XP Dividends related to the Company’s December 2006 dividend of $0.20 per share and the $0.05 per share May 2007 Dividend, as described in the Company’s October 29, 2007 press release reporting the Company’s financial results for the third quarter of 2007. The Company estimates that 100% of the dividends paid to a shareholder in 2007 will generally be treated first as a nontaxable return of capital to the extent of the shareholder’s tax basis in his or her shares, with any excess amount over the shareholder’s tax basis being treated as capital gain. The Company does not make any guarantees as to the ultimate tax treatment and advises shareholders to consult their tax advisors.
