NEWPORT BEACH, CA., November 15, 2022 /PRNewswire/ — California First Leasing Corporation (the “Company” or “CalFirst Leasing”, OTCQX: CFNB) today announced the commencement of a board-approved tender offer to repurchase up to 375,000 common shares, or approximately 3.6% of its shares outstanding shares. CalFirst Leasing shareholders will have the option to tender some or all of their shares to the Company at a price of $16.00 per share. On November 14, 2022on the last trading day prior to the commencement of the offering, was the reported final selling price of the common shares $16.26 per share. The tender offer began today and is expected to expire at 5:00 p.m. unless extended. NYC time is running 15th December2022.
Patrick PadonChief Executive Officer, noted, “The tender offer provides a mechanism for shareholders (particularly those who, due to the size of their position, may not be able to sell their shares within the limited trading volume for our common shares) to tender all or a portion of their shares and receive a partial or full refund of their investment, if they so choose.The tender offer also provides shareholders with an efficient way to sell their shares without incurring brokerage fees or commissions associated with open market sales Common stock represents a prudent use of our available cash and a powerful vehicle to provide shareholder value.”
Offers for the Company’s common shares must be made prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer. All shares accepted in the tender offer will be acquired by at the same price $16.00 per share. If the total number of shares offered exceeds the number of shares offered for repurchase by the Company, the Company will repurchase the shares from shareholders pro rata (subject to priority for odd lot holders). Subject to certain restrictions and legal requirements, in the event that more than 375,000 shares are tendered in the offering, the Company reserves the right to purchase up to an additional 2% of our outstanding common shares or an additional 205,683 shares without extending the offering.
Neither CalFirst Leasing, its board of directors, the Depositary nor the Information Agent makes any recommendation to shareholders as to whether or not to offer their shares. The information agent for the tender offer is Georgeson LLC and the custodian is Computershare Trust Company, NA
This announcement is for informational purposes only and constitutes neither an offer to purchase nor a solicitation of an offer to sell any shares of CalFirst Lease common. The solicitation of offers to purchase shares of CalFirst Lease common stock is made solely pursuant to the dated tender offer November 15, 2022 (as amended or supplemented), the related letter of transmittal and other related documents that CalFirst Lease sends to its shareholders. The tender offer documents contain important information that should be read carefully before making any decision regarding the tender offer. CalFirst Lease is distributing these materials to its stockholders free of charge. In addition, all materials (and other offering materials filed with the Securities and Exchange Commission (the “SEC”) are available free of charge at the SEC’s website at www.sec.gov and from the information agent.
California First Leasing Corporation is incorporated as an internally managed, undiversified, closed-ended investment company under the Investment Company Act of 1940, as amended February 2022. The company continues its leasing business while utilizing equity investments to maximize current income and generate capital appreciation.
This press release contains forward-looking statements, such as the commencement, expiration and completion of the tender offer and the related payment for shares. These statements, including the assumptions underlying them, are subject to risks and uncertainties and are not guarantees of future performance. The results may differ due to various factors, e.g. B. the possibility that shareholders do not tender their shares in the tender offer or the possibility that other conditions for the completion of the tender offer are not met. For more details on these risks, you should review our filings with the SEC, including our Addendum TO and the documents referenced therein.
The statements contained in this press release speak only as of the date of publication. Except as otherwise required by applicable law, the Company undertakes no obligation to publicly update any of its forward-looking statements based on events or circumstances after the date of this release.
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SOURCE California First Leasing Corporation