Central Federal Corporation Stockholder Passage of Reverse Stock Split
On March 14, Central Federal Corporation (GCFC) issued a press release announcing the shareholder approval of the 1-for-325 reverse stock split. According to the press release, “The Board is expected to make a decision within two weeks about whether to proceed with the reverse stock split transaction.”
I expect this transaction to be approved and completed within the month. There are still some risks involved, as Alexander at Wealth Junkie points out, but I believe the risks are over estimated by the market at this point. I look forward to analyzing the performance of this transaction when it is completed.
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George, Have you seen this article yet? Do you think it’s legit, or an attempt to get people to sell reduce the number of shares to buy back?
http://columbus.bizjournals.com/columbus/stories/2005/03/14/daily39.html
I saw the article, and I too was suspicious that it might be misleading. However, Central Federal released a press release yesterday indicating that their Board of Directors decided against proceeding with the reverse split.
I’m pretty upset that the information regarding the Board’s decision was leaked to the press before being officially released.