🧾 What This Document Is

This is a 6-K filing, which is a foreign company's current report filed with the SEC. Think of it as a major announcement. In this case, Toro Corp. is telling the world, "We're giving our shareholders a one-time, special dividend!" It's not their regular quarterly payout; this is extra.

🏢 What The Company Does

👉 In simple terms, Toro Corp. is a global energy transportation company. They own and operate ships that carry energy products around the world. Their fleet has two specialized ships for liquefied petroleum gas (LPG) and two for refined oil products like gasoline. They're based in the Marshall Islands but trade on the NASDAQ under the ticker TORO.

💰 The Special Dividend Details

This is the heart of the announcement. Here’s how it works:

• Amount: A $0.90 per share one-time payment.
• Your Choice: You can take it as cash or as new Toro Corp. shares.
• Record Date: You must be a shareholder on May 4, 2026 to receive it.
• Payment Date: The dividend will be sent out on June 5, 2026.

👉 Key Takeaway: This is a "choose your adventure" dividend. If you do nothing, you'll get cash. If you want more shares in the company instead, you must actively elect that option by a deadline.

📦 How The Stock Election Works

If you choose stock instead of cash, here's the math:

• The number of new shares you get is based on a specific price: $3.8821 per share. This is the average price of Toro stock over the 20 days leading up to April 21, 2026.
• So, for every share you owned on the record date, you'd get about 0.2318 new shares ($0.90 / $3.8821).
• ⚠️ Important: The stock's market price on payment day might be higher or lower than $3.8821. You're trading a guaranteed $0.90 for the ups and downs of the stock market.

📅 Critical Dates & Deadlines

• April 21, 2026: The price calculation period ended (20-day VWAP set).
• May 4, 2026: Record Date. Must be a shareholder by this day's close.
• May 22, 2026, 5:00 PM ET: Election Deadline. If you want stock, your choice form must be received by this time.
• June 4, 2026: Toro can still decide to pay everything in cash, even if you elected stock.
• June 5, 2026: Dividend Payment Date.

👉 Why it matters: If you're a shareholder, mark May 22 in your calendar. Missing that deadline means you automatically get cash.

💵 The Tax Angle

Toro states this will be a taxable dividend, no matter if you take cash or stock. This means you'll owe income tax on the $0.90 value in the year you receive it. It's not a tax-free gift.

⚖️ Big Picture: Strengths & Risks

• 👍 Strength / Signal: Paying a special dividend often signals confidence from management. It suggests the company has generated excess cash it believes won't be needed for operations or investments and is rewarding shareholders directly. It's a positive sign of financial health.
• ⚠️ Risk / Consideration: The company reserves the right to pay everything in cash at the last minute, ignoring your stock election. This gives them flexibility but means your choice isn't 100% guaranteed until payment day. Also, for the stock election, you're exposed to share price volatility.

🧠 The Analogy

Imagine your company, Toro, is a successful shipping business that found a valuable piece of driftwood (extra cash) on the beach. Instead of keeping it in the shed, the owners (the board) decide to share it with all the part-owners (shareholders). They offer you your share as either a clamshell full of cash ($0.90) or a piece of the driftwood itself (new shares), valued at what it was worth on average last month. You have to decide which you'd rather have, but the beach patrol (Toro's management) could change their mind and give everyone cash at the last second.

🧩 Final Takeaway

Toro Corp. is distributing a $0.90 per share special dividend, payable in June. Shareholders must choose between cash or stock by May 22 or they'll get cash automatically. This move is a sign of the company's solid cash position but requires a timely decision from investors.