First Foundation Will Sell And Issue 11,308,676 Shares Of Common Stock At A Price Per Share Of $4.10, 29,811 Shares Of A New Series Of Preferred Stock, Designated As Series A Noncumulative Convertible Preferred Stock And 14,490 Shares Of A New Series Of Preferred Stock Designated As Series B Noncumulative Convertible Preferred Stock
Portfolio Pulse from Benzinga Newsdesk
First Foundation Inc. (FFWM) announced it will sell and issue 11,308,676 shares of common stock at $4.10 per share, along with 29,811 shares of Series A Noncumulative Convertible Preferred Stock and 14,490 shares of Series B Noncumulative Convertible Preferred Stock.
July 02, 2024 | 8:29 pm
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First Foundation Inc. (FFWM) is issuing 11,308,676 shares of common stock at $4.10 per share, along with new Series A and B preferred stocks. This could lead to short-term dilution of existing shares.
The issuance of a large number of new shares typically leads to dilution of existing shares, which can negatively impact the stock price in the short term. The addition of new preferred stocks also adds complexity to the company's capital structure.
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