CIB Marine Bancshares, Inc. Announces 1:15 Reverse Split of
BROOKFIELD, Wis, Sept. 11, 2020 (GLOBE NEWSWIRE) — CIB Marine Bancshares, Inc. (the “Company” or “CIBM”) (OTCQB:CIBH), announced that at 4:59 a.m. September 2020 (the “Effective Date”), it will affect a 1:15 stock consolidation, as previously approved by its board of directors and a majority of its common shareholders. On the Effective Date, the common shares of the Company, with a par value of $1.00 per share (the “Common Shares”), will commence trading on a split-adjusted basis. The stock symbol of the Company is expected to change to “CIBHD” on the Effective Date and will remain so for a period of 20 trading days, after which the stock symbol of the Company will revert to the original stock symbol of “CIBH”. The Company’s CUSIP number will change to 12542L400 for all Common Shares traded or issued on or after the Effective Date.
On the Effective Date, fifteen issued and outstanding Common Shares, and all unvested Restricted Share Awards issued under the Company’s Restricted Share Plan, will be converted into one Common Share. In addition, the number of common shares authorized for issuance under the Company’s restricted stock plan will be reduced proportionately to reflect the stock consolidation. Neither the authorized number of common shares nor the par value per share of the common shares will change as a result of the share consolidation.
No fractional shares will be issued. CIBM will pay cash (without interest) in lieu of issuing fractional shares under the reverse split based on the closing price of common stock as listed on the OTCQB market on the date of entry in force. Shareholders holding less than fifteen common shares will receive cash only for their shares held prior to the stock consolidation and will no longer hold common shares from the effective date. CIBM expects to pay less than $5,000 in total for the fractional interest.
The reverse stock split will not affect an ordinary shareholder’s percentage ownership in CIBM or voting rights, except for nominal effects resulting from the treatment of fractional shares. In addition, the Reverse Split will have no effect on the authorized preferred shares of the Company except with respect to a proportional change in the conversion rates of the Series B Preferred Shares, if any.
CIBM has retained the services of its transfer agent, Computershare Inc. and its wholly-owned subsidiary Computershare Trust Company, NA (together “Computershare”), to manage the exchange of the pre-split shares for new post-split shares. . Computershare may be contacted toll free at (800) 962-4284.
Registered shareholders whose common shares are held in certificated form will receive instructions from Computershare regarding the process for exchanging their old certificates in the coming days. Computershare will issue all shares after the split in book-entry form, unless physical certificates are specifically requested by the shareholder. Shareholders whose pre-split shares are held in book-entry form or through a bank, broker, custodian or other agent (i.e. to “street name”) are not required to take any action and will see the effect of the reverse stock split reflected in their accounts. Shareholders who hold their shares in street name should contact their bank, broker, custodian or other agent with any questions regarding their procedures in connection with the share consolidation.
“We expect this split will increase the market price per share and make our stock more palatable to a broader set of brokers, thereby improving the marketability and liquidity of our stock. Our shareholders strongly supported this move at our annual meeting. meeting held on April 30, 2020, and I am pleased that we were able to accomplish this for our shareholders,” said J. Brian Chaffin, President and CEO of CIB Marine.
CIB Marine Bancshares, Inc. is the holding company of CIBM Bank, which operates eleven banking offices and five mortgage offices in Illinois, Wisconsin and Indiana. Further information about the Company is available at www.cibmarine.com, including recent letters to shareholders, links to regulatory financial reports and audited financial statements.
CIB Marine has made statements in this release that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. CIB Marine intends such forward-looking statements to be subject to the safe harbor thus created and includes this statement to take advantage of the safe harbor. Forward-looking statements are generally identified by statements containing words and phrases such as “may”, “plan”, “are confident”, “should”, “intend”, “predict”, “believe”. , “plan”, “expect”, “estimate”, “anticipate” and similar expressions. These forward-looking statements reflect CIB Marine’s current views regarding future events and financial performance which are subject to numerous uncertainties and factors relating to CIB Marine’s operations and the business environment, which may change at any time.
There are inherent difficulties in predicting factors that could affect the accuracy of forward-looking statements.
Shareholders should note that many factors could affect CIB Marine’s future financial results and could cause such results to differ materially from those expressed in the forward-looking statements contained or incorporated by reference herein. These factors, many of which are beyond CIB Marine’s control, include but are not limited to:
- operational, legal, execution, credit, market, security (including cyber) and regulatory risks;
- economic, political and competitive forces affecting CIB Marine’s banking business;
- the impact on net interest income and the value of securities of changes in monetary policy and general economic and political conditions; and
- the risk that the analyzes of these risks and strengths by CIB Marine are erroneous and/or that the strategies developed to deal with them fail.
These factors should be considered when evaluating forward-looking statements, and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made. CIB Marine undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are subject to significant risks and uncertainties, and CIB Marine’s actual results may differ materially from the results discussed in the forward-looking statements.
FOR MORE INFORMATION, CONTACT:
J. Brian Chaffin, President and CEO