Shareholders of OptimumBank Holdings (OPHC) have approved a reverse stock split aimed at preserving the Fort Lauderdale, Fla., company's Nasdaq listing.
The 1-for-4 reverse split will take effect May 31, OptimumBank said Friday. Nasdaq warned the $144 million-asset company last year that it was in danger of being delisted because its share price had fallen below $1. Its stock closed Friday at 42 cents a share.
OptimumBank's shareholders also approved a $2.2 million stock sale to Chairman Moishe Gubin, the company said Friday. Gubin is paying 30 cents a share and will end up with a 25.6% stake in OptimumBank, it had said in a related filing with the Securities and Exchange Commission in March.
The sale is intended to raise OptimumBank's capital levels, it said. Its Tier 1 leverage ratio stood at 7.10%, and its total risk-based capital ratio at 9.93% as of March 31, according to the Federal Deposit Insurance Corp.
OptimumBank hired a longtime Florida bank executive, Timothy Terry, as chief executive in February, after Richard Browdy resigned as president, CEO and chief financial officer. It named Jeffry Wagner the CFO the next month.