Monarch Financial to convert series B preferreds to common stock

By Tali David

Minneapolis, Feb. 21 - Monarch Financial Holdings, Inc. said that all outstanding shares of its series B noncumulative convertible preferred stock will be converted to shares of the company's common stock on March 8, according to a filing with the Securities and Exchange Commission.

For 20 out of the most recent 30 trading days, the company's common shares have traded at 130% of a pre-established conversion price, which entitles the company to force convert each preferred share to 3.75 shares of common stock.

Cash will be issued in lieu of fractional shares, the filing said.

As of Feb. 20, there were 309,348 shares of the preferred stock outstanding, and assuming those shares remain outstanding as of March 8, they will convert to a maximum of 1,160,055 shares of common stock.

"The return of our capital to common stock and the anticipated growth in our net income available to common shareholders will have a positive impact on our shareholders," chief executive officer Brad E. Schwartz said in the filing.

Monarch is a Chesapeake, Va.-based bank holding company with branch operations mostly in Virginia.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.