Edwin Hale Sr. sold a big block of stock in his former employer, literally getting pennies for each share.
Hale, who stepped down as the chairman and chief executive of First Mariner Bancorp Inc. on Dec. 22, recently disclosed the sale of nearly 1.1 million shares of the Baltimore company’s stock. The Dec. 28 sale to one or more unnamed buyers brought in $21,084, or just 2 cents a share, according to Hale's filing with the Securities and Exchange Commission.
It is unclear why Hale would sell the stock for roughly a tenth of its value at the time; First Mariner's shares closed at 25 cents each on the day the stock was sold. Efforts to reach Hale were unsuccessful.
Hale still owns roughly 2.2 million shares of First Mariner stock, or an 11.6% stake, according to another filing. His departure from First Mariner was part of a recapitalization agreement that the company has with Priam Capital, a New York private equity firm.
The $36.4 million capital infusion has been pending since it was announced last April as the company has passed its deadline to raise another $123.6 million. A potential delisting from the Nasdaq has cast further doubt over the transaction.