Stock of Bimini Capital Management, Inc. [OTCQB: BMNM] surged 20.44% to $1.6500 at the previous close. The volume of Bimini stock was 28.21K, compared to its 30-day average of 7.41K. In the last 52 weeks, price of BMNM stock varied between $0.4200 and $1.7400. BMNM stock rose after the tender offer was launched.
In what manner was BMNM planning to acquire shares?
In addition to investing in residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae), Bimini Capital Management also invests in the municipal and commercial mortgage markets. According to BMNM, it seeks to earn returns from the spread between its assets and its costs, which include interest expense associated with borrowing funds.
As of last week, Bimini announced the initiation of an “advanced Dutch auction” tender offer.
- Shares of class A common stock with a par value of $0.001 each will be purchased by BMNM to the tune of up to $2.2 million.
- Similarly, fewer shares may be considered if properly tendered and not withdrawn, for a price not to exceed $2.00 nor less than $1.50 per share of Class A Common Stock, without tax withholdings and without interest (the “Offer”).
- It is not necessary to tender a minimum number of Class A Common Stock shares to be eligible to participate in the BMNM offer.
The offer will be executed in what way?
Bimini (BMNM)’s Offer to Purchase and related Letter of Transmittal describing BMNM’s Offer to Purchase are filed with the SEC on May 27, 2021, on the terms outlined in the offers. The letters will also be sent to designated brokers or other nominees of holders of Class A Common Stock, as appropriate.