Fort Lauderdale, FL, Jan. 15, 2020 (GLOBE NEWSWIRE) -- At the Annual Shareholder meeting of OptimumBank Holdings, Inc. (OPHC), which took place in August 2019, two issues were presented that dealt with outstanding Trust Preferred Securities (TruPS). The first issue was to allow an entity (Preferred Shares LLC) to acquire and sell TruPS. Moishe Gubin, a director at OPHC is a part owner of Preferred Shares LLC. The second issue was to provide for 1,000,000 common shares to be available in a designated tender offer exchange of TruPS for such common shares. These issues were unanimously agreed upon by shareholders.
The results of the exchange were as follows: 924,395 common shares were issued at a per share exchange value $2.86 – based on terms of the offer and a NASDAQ end of day price of $2.86.
Most importantly, these successful combined actions have eliminated significant debt of OPHC and have replaced same with equity.
This tender offer and subsequent exchange has reduced by roughly half, the original amount of the TruPS outstanding balance. The additional shares issued will for some investors reduce ownership percentage interest but, has increased book value per share from $2.37 to $2.53.
In addition, OPHC believes the newly outstanding shares will increase daily stock trading and overall available daily float. This increased liquidity will also help stabilize volatility, increase trading and overall shareholder value.
Future tender offers of a similar nature are possible to eliminate the TruPS issue.
It is important to recognize that the OPHC Board of directors is exceptionally rich in talent and abilities. This effort, spearheaded By Moishe Gubin, together with colleagues whose depth of experience in stock analysis, technology, and capital markets brought this forth.
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OptimumBank Holdings. Inc.