By Shares of Republic First Bancorp experienced a surge in early trading following the company’s announcement of active discussions with an activist investor group. The talks revolve around potential strategic opportunities, including a possible capital raise.
Market Reaction
Initially, the stock soared by an impressive 87% to reach 30 cents right after the market opened. However, the stock’s gains were short-lived and it soon plummeted back to a negligible increase of 17 cents.
Negotiations with the Norcross-Braca Group
Republic First Bancorp, headquartered in Philadelphia, disclosed on Friday morning that it is currently engaged in negotiations with the Norcross-Braca Group, which includes activist investor George Norcross III.
In a positive development, the group has agreed to temporarily suspend its pending litigation against the bank holding company. Previously, the group had initiated a proxy fight against Republic First Bancorp. This year, the company witnessed a notable decline of 92% in its shares due to leadership changes and an unsuccessful capital raise during the summer months.
Postponement of Annual Meeting
In light of the ongoing discussions and developments, Republic First Bancorp has decided to postpone its 2022 annual meeting of shareholders. Initially scheduled for October 5, the meeting is now rescheduled to take place on December 19.
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