Broadway Financial Corporation Announces Securities Purchase from Hot Creek Capital and Proposed Sale of Securities to Cathay General Bancorp.Business Editors LOS ANGELES--(BUSINESS WIRE)--March 18, 2004 Broadway Financial Corporation (Nasdaq:BYFC) (the "Company"), the holding company for Broadway Federal Bank, f.s.b., reported today that it has purchased the holdings of Hot Creek Hot Creek could refer to one of a number of streams or rivers, including: United States
stand·still n. Complete cessation of activity or progress. provision under which Cathay has agreed not to acquire additional shares of BYFC stock. The Company further reported that it has issued $6 million of subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before in a private placement for the purpose of funding the repurchase of shares from Hot Creek. The Company believes that these transactions will be accretive to earnings per share. Broadway Federal Bank, f.s.b., will maintain its status as a well-capitalized institution under applicable government regulations after completion of the transactions. The tender offer will be completed after Cathay makes its investment in the Company, which is expected to be within the next 60-90 days, depending on the time required for Cathay to receive regulatory approval for its investment. BYFC shares traded in the range of $13.00 to $15.00 per share between January 1, 2004 and March 15, 2004, with an average price per share over the period of $13.87. The average daily trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. of Broadway shares over the same period was 1,420 shares. Broadway Federal Bank, f.s.b. is a community-oriented savings bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , which primarily originates residential mortgage loans and conducts funds acquisition in the geographic areas known as Mid-City and South Los Angeles South Los Angeles is the official name for a large geographic and cultural area lying to the southwest and southeast of downtown Los Angeles, California. The area was formerly called South Central Los Angeles, and is still sometimes called South Central. . The Bank operates four full service branches, three in the city of Los Angeles
Certain matters discussed in this news release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements relate to, among other things, expectations regarding the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, and statements regarding strategic objectives. These forward-looking statements are based upon current management expectations and involve risks and uncertainties. Actual results or performance may differ materially from those suggested, expressed, or implied by forward-looking statements due to a wide range of factors, including, but not limited to, the general business environment, the real estate market, competitive conditions in the business and geographic areas in which the Company conducts its business, regulatory actions or changes and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including the Company's Annual Reports on Form 10-KSB and Quarterly Reports on Form 10-QSB. Shareholders, analysts, and others seeking information about the Company are invited to write to: Broadway Financial Corporation, Investor Relations Investor relations The process by which the corporation communicates with its investors. , 4800 Wilshire Blvd., Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , CA 90010. Additional Legal Information: This press release is for informational purposes only and is not an offer to buy or a solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to sell any shares of the Company. The Company's proposed tender offer will be made solely by the Offer to Purchase, which will be mailed to shareholders. Shareholders and investors are urged to carefully read the Offer to Purchase, when it becomes available. These materials will contain important information about the offer including the various terms and conditions to the offer. Shareholders will be able to obtain a free copy of the Tender Offer Statement on Schedule TO, the Offer to Purchase and other documents that the Company will file with the Securities and Exchange Commission at the Commission's website at www.sec.gov. Shareholders will also be able to obtain a copy of these documents, without charge, from the Company at its Investor Relations address indicated above. |
|
|||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion