Pinnacle Bancshares Inc. in Jasper, Ala., is planning to delist its shares from the American Stock Exchange to trim regulatory and compliance costs.
The $243 million-asset company said Friday that it would tender an offer to buy back common shares held by anyone who owned 99 shares or less at the close of business Oct. 10. Pinnacle said it would pay $16.25 a share, plus $50 to each stockholder who properly tenders the shares.
The company is aiming to reduce the number of shareholders to under 300, so it can deregister its stock with the Securities and Exchange Commission and delist from the exchange. Pinnacle estimates that 37% of its stockholders own fewer than 100 shares.
"The purpose of the tender offer is to reduce the number of Pinnacle stockholders of record and reduce or eliminate future servicing fees, SEC reporting costs, and stock listing fees," Robert B. Nolen Jr., its president and chief executive, said Friday in a press release. "We also expect to reduce the significant amount of management time devoted to these activities."
Dozens of small banking companies have delisted their shares in recent years to save money. Pinnacle's common stock would continue to trade on the OTC Bulletin Board or the Pink Sheets.
