OptimumBank Holdings, Inc. (OPHC-NASDAQ) – BUILDING ON A NEW FOUNDATION
January 15 2020 - 10:00AM
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.
Benefits/Results
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.
Safe Harbor Statement
This press release contains forward-looking
statements that can be identified by terminology such as
"believes," "expects," "potential," "plans," "suggests," "may,"
"should," "could," "intends," or similar expressions. Many
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from any future results or implied by such
statements. These factors include, but are not limited to, our
limited operating history, managing our expected growth, risks
associated with integration of acquired websites, possible
inadvertent infringement of third party intellectual property
rights, our ability to effectively compete, our acquisition
strategy, and a limited public market for our common stock, among
other risks. OptimumBank Holdings, Inc.'s future results may also
be impacted by other risk factors listed from time-to-time in its
SEC filings. Many factors are difficult to predict accurately and
are generally beyond the company's control. Forward looking
statements speak only as to the date they are made and OptimumBank
Holdings, Inc. does not undertake to update forward-looking
statements to reflect circumstances or events that occur after the
date the forward-looking statements are made.
Investor Relations:
OptimumBank Holdings.
Inc.investor@optimumbank.com+1.954.900.2805
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