Newtek Business Services Corp. Receives Shareholder Approval to Discontinue the Company’s Election to be Regulated Under the Investment Company Act of 1940
June 01 2022 - 10:33AM
Newtek Business Services Corp., (NASDAQ: NEWT), an internally
managed business development company (“BDC”), announced that
earlier today at a special meeting of shareholders (the “Special
Meeting”), Newtek shareholders overwhelmingly approved a proposal
authorizing the Company’s Board of Directors to discontinue the
Company’s election to be regulated under the Investment Company Act
of 1940, as amended (the “1940 Act”) (subject to certain regulatory
approvals and closing conditions described in the Company’s Proxy
Statement dated May 2, 2022) (the “Proposal”). As disclosed in the
Company’s Form 8-K filed today, 89% of the votes cast at the
Special Meeting were in favor of the Proposal.
As disclosed on August 2, 2021, the Company entered into a stock
purchase agreement to acquire all of the issued and outstanding
stock of the National Bank of New York City (“NBNYC”) (the
“Transaction”), subject to regulatory approvals and closing
conditions. Following the closing of the Transaction, the Company
intends to rename NBNYC as Newtek Bank & Trust, N.A., to
operate as a bank holding company, and to elect financial holding
company status.
The Company’s Board of Directors will not seek to discontinue
the Company’s election as a BDC under the 1940 Act until after the
Company receives the necessary regulatory approvals of the
Transaction and after Transaction closing conditions are met. Any
discontinuance of the Company’s BDC election will become effective
upon receipt by the SEC of a Form N-54C. After the Form N-54C is
filed with the SEC, the Company will no longer be subject to the
regulatory provisions of the 1940 Act applicable to BDCs. The
Company anticipates the Transaction to be completed during the
third quarter of 2022.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “We are extraordinarily pleased with the results announced
today at our Special Meeting of Shareholders. As we close out the
results of the Special Meeting proxy vote to give the Board
authorization to discontinue the Company’s election to be regulated
under 1940 Act, as we have previously stated, management and the
Board believe it is in the long-term best interest of the Company
to have the authorization and the option to discontinue the
election and to move forward with the acquisition of NBNYC, subject
to regulatory approvals and closing conditions.”
“Given the recent troubled and turbulent times in the world
economy and in the U.S. capital markets, we believe that receiving
89% “FOR” votes for this Proposal is a tremendous testimony to the
relationship the Company has with its shareholders. The resulting
shareholder action today is an important step towards Newtek
executing on its strategy that is has developed over the course of
24 years; becoming the One Company to make our business clients
more successful, and the One Company business clients come to for
their important and vital business needs.”
“We want to thank all of our loyal shareholders for continuing
to have faith in Newtek and its management, and we anticipate
successfully navigating the current turbulence in the economy and
in the market, as we have done historically even through the
difficult conditions of the 2008-2009 credit crisis and the recent
pandemic. We look forward with optimism and confidence to
continuing to utilize technology to be a disruptor in providing
financial and business solutions to independent business owners,
particularly through becoming a bank holding company and owning
NBNYC - a nationally chartered bank. We believe the world is
changing, technology is changing and banking will change so that
financial institutions will have to do more for their customers
than just take deposits and make loans. We believe we will be well
suited to accept and conquer the challenge as the bank of the
future.”
Newtek Business Services Corp., Your Business Solutions
Company®, is an internally managed BDC, which along with its
controlled portfolio companies, provides a wide range of business
and financial solutions under the Newtek® brand to the small- and
medium-sized business (“SMB”) market. Since 1999, Newtek has
provided state-of-the-art, cost-efficient products and services and
efficient business strategies to SMB relationships across all 50
states to help them grow their sales, control their expenses and
reduce their risk.
Newtek’s and its portfolio companies’ products and services
include: Business Lending, SBA Lending Solutions, Electronic
Payment Processing, Technology Solutions (Cloud Computing, Data
Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts
Receivable Financing & Inventory Financing, Insurance
Solutions, Web Services, and Payroll and Benefits Solutions.
Newtek® and Your Business Solutions Company® are
registered trademarks of Newtek Business Services Corp.
Note Regarding Forward Looking
Statements
This press release contains certain
forward-looking statements. Words such as “believes,” “intends,”
“expects,” “projects,” “anticipates,” “forecasts,” “goal” and
“future” or similar expressions are intended to identify
forward-looking statements. All forward-looking statements involve
a number of risks and uncertainties that could cause actual results
to differ materially from the plans, intentions and expectations
reflected in or suggested by the forward-looking statements. Such
risks and uncertainties include, among others, intensified
competition, operating problems and their impact on revenues and
profit margins, anticipated future business strategies and
financial performance, anticipated future number of customers,
business prospects, legislative developments and similar matters.
Risk factors, cautionary statements and other conditions, which
could cause Newtek’s actual results to differ from management’s
current expectations, are contained in Newtek’s filings with the
Securities and Exchange Commission and available through
http://www.sec.gov/. Newtek cautions you that
forward-looking statements are not guarantees of future performance
and that actual results or developments may differ materially from
those projected or implied in these statements.
SOURCE: Newtek Business Services Corp.
Investor Relations & Public
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
NewtekOne (NASDAQ:NEWT)
Historical Stock Chart
From Mar 2024 to Apr 2024
NewtekOne (NASDAQ:NEWT)
Historical Stock Chart
From Apr 2023 to Apr 2024