Finance of America Announces Expected Effective Date of July 25, 2024 for Reverse Stock Split
15 Juillet 2024 - 11:44PM
Business Wire
Finance of America Companies Inc. (“Finance of America” or the
“Company”) (NYSE: FOA), a leading provider of home equity-based
financing solutions for a modern retirement, today announced that
it expects its intended 1-for-10 reverse stock split of its
outstanding shares of Class A Common Stock, previously disclosed on
June 27, 2024, to be effective as of July 25, 2024 at 5:00 p.m.
Eastern Time (the “Effective Time”). The Company’s Class A Common
Stock is expected to begin trading on a split-adjusted basis on the
New York Stock Exchange (“NYSE”) under the existing symbol (FOA)
when the market opens on July 26, 2024. The new CUSIP number for
the Company’s Class A Common Stock following the reverse stock
split will be 31738L 206.
As of the Effective Time, every ten issued and outstanding
shares of the Company’s Class A Common Stock will be automatically
reclassified into one issued and outstanding share of the Company’s
Class A Common Stock. No fractional shares will be issued as a
result of the reverse stock split. Instead, Continental Stock
Transfer & Trust Company, the Company’s exchange agent, will
aggregate and sell any such fractional shares and the cash proceeds
of such sale will be issued to stockholders in lieu of fractional
shares on a pro rata basis. Proportionate adjustments will be made
to the terms of outstanding warrants, equity-based awards, limited
liability company units of Finance of America Equity Capital LLC
(the “Class A LLC Units”) (which are exchangeable for shares of
Class A Common Stock on a one-for-one basis), the Company’s equity
plans and certain other agreements, in accordance with the terms of
the applicable agreements.
With respect to the Company’s warrants, every ten shares of
Class A Common Stock that may be purchased pursuant to the exercise
of warrants prior to the Effective Time represent one share of
Class A Common Stock that may be purchased pursuant to such
warrants following the Effective Time. The exercise price for each
warrant following the Effective Time equals the product of ten
multiplied by the exercise price prior to the Effective Time.
Accordingly, the exercise price for the Company’s public warrants
will be $115. The CUSIP number for the Company’s warrants will not
change.
Additionally, the reverse stock split will not affect the number
of authorized shares, the par value of the Class A Common Stock or
the number of outstanding shares of Class B Common Stock.
Continental Stock Transfer & Trust Company is acting as the
exchange agent for the reverse stock split. Registered stockholders
holding pre-split shares of the Company’s Class A Common Stock are
not required to take any action to receive post-reverse stock split
shares of Class A Common Stock in registered book-entry form or
cash payment in lieu of fractional shares, if applicable.
Stockholders owning shares through a broker, bank or other holder
of record are expected to have their positions automatically
adjusted to reflect the reverse stock split and cash payment in
lieu of fractional shares, if applicable, subject to any particular
processes of the holder of record. Stockholders that hold shares of
Class A Common Stock with a broker, bank or other holder of record,
should contact their holder of record with any questions in this
regard.
The reverse stock split is primarily intended to increase the
per share trading price of Finance of America’s Class A Common
Stock in order to meet the NYSE’s price criteria for continued
listing.
Additional information about the reverse stock split can be
found in Finance of America’s definitive information statement
filed with the Securities and Exchange Commission (the “SEC”) on
June 27, 2024, which is available free of charge at the SEC’s
website at www.sec.gov and on Finance of America’s website at
https://ir.financeofamerica.com.
About Finance of America
Finance of America (NYSE: FOA) is a leading provider of home
equity-based financing solutions for a modern retirement. In
addition, Finance of America offers capital markets and portfolio
management capabilities primarily to optimize the distribution of
its originated loans to investors. Finance of America is
headquartered in Plano, Texas. For more information, please visit
www.financeofamerica.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are not historical facts or statements of current
conditions, but instead represent only the Company’s beliefs
regarding future events, many of which, by their nature, are
inherently uncertain and outside of the Company’s control. These
statements include, but are not limited to, statements related to
the expected reverse stock split of the Company’s Class A Common
Stock (including timing of the reverse stock split, the effects of
the reverse stock split, expected payment of cash in lieu of
fractional shares, anticipated timing of the commencement of
trading on a split-adjusted basis and the impact of the reverse
stock split on the Company’s share price), the Company’s ability to
regain compliance with the NYSE’s continued listing standards and
the Company’s ongoing business operations. In some cases, you can
identify these forward-looking statements by the use of words such
as “outlook,” “believes,” “expects,” “potential,” “continues,”
“may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,”
“intends,” “plans,” “estimates,” “budgets,” “forecasts,”
“anticipates,” or the negative version of these words or other
comparable words. The Company cautions readers not to place undue
reliance upon any forward-looking statements, which are current
only as of this press release. The Company does not undertake or
accept any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements to reflect
any change in its expectations or any change in events, conditions,
or circumstances on which any such statement is based, except as
required by law. All subsequent written and oral forward-looking
statements concerning the Company or other matters and attributable
to the Company or any person acting on its behalf are expressly
qualified in their entirety by the cautionary statements set forth
in this paragraph. A number of important factors exist that could
cause future results to differ materially from historical
performance and these forward-looking statements. New factors
emerge from time to time, and it is not possible for the Company’s
management to predict all such factors or to assess the effect of
each such new factor on its business. Although the Company believes
that the assumptions underlying the forward-looking statements
contained herein are reasonable, any of the assumptions could be
inaccurate, and any of these statements included herein may prove
to be inaccurate. Given the significant uncertainties inherent in
the forward-looking statements included herein, the inclusion of
such information should not be regarded as a representation by the
Company or any other person that the results or conditions
described in such statements, or the Company’s objectives and plans
will be achieved. Please refer to “Risk Factors” included in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023, filed with the SEC on March 15, 2024, for further
information on these and other risk factors affecting the Company,
as such factors may be amended and updated from time to time in the
Company’s subsequent periodic filings with the SEC, which are
accessible on the SEC’s website at www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20240715407757/en/
For Finance of America Media: pr@financeofamerica.com For
Finance of America Investor Relations: ir@financeofamerica.com
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