The latest capital raise by BankGuam Holding in Hagatna offers a hair-raising warning to potential investors: North Korea’s threats of launching a missile at the company’s home turf.
The $2 billion-asset company filed documents Wednesday to raise up to $20 million by selling common stock. Proceeds would be used for general corporate purposes that could include acquisitions or reducing or refinancing debt.
The filing’s comments on North Korea set it apart from other financial institutions looking to raise capital.
“Our business is subject to geopolitical conditions in the western Pacific, including concerns over North Korea’s nuclear weapons program,” the filing said. “In recent months, there have been heightened security concerns regarding North Korea’s nuclear weapons and long-range ballistic missile programs. … If North Korea were to take an aggressive action, including acts of war, the markets we serve may be disrupted and our business operations could be affected as well.”
North Korea recently warned that its missile launch over Japan was a prelude to more military operations directed at Guam. The island is the closest U.S. territory to North Korea and is also home to Andersen Air Force Base and Naval Base Guam.
