By David Migoya
Denver-based Guaranty Bancorp is planning a 5-for-1 reverse-stock split in hopes of luring new investors with a share price stronger than the anemic one the bank has watched for several years, according to a public filing.
In a nod toward more investments, the bank said in a proxy filing with the Securities and Exchange Commission that it is asking shareholders to approve the reverse split at its May 7 annual meeting.
The split is one of five items on the agenda, including a shareholder advisory vote on compensation for the bank’s top executives and its board of directors.
The stock split is mainly to boost interest in the bank’s shares, which have historically traded around $2, a number too weak to attract big-money institutional investors, according to its DEF 14A filing on Monday.
Mutual funds and pension plans are more likely to look at a stock priced over $5 than one trading below that amount, the bank said in its filing.
The bank said the split would also reduce administrative costs tied to the number of outstanding shares.