Cases
First Bancshares, Inc. (NASDAQ : FBMS)
Securities Class Action
Overview
Overview
- Date:
- 11/11/2016
- Company Name:
- First Bancshares, Inc.
- Stock Symbol:
- FBMS
- Class Period:
- FROM 11/9/2016
- Status:
- Closed/Complete
- Court:
- U.S. District Court: District of Southern Mississippi
NEW YORK, November 11, 2016 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Mississippi Southern District Court on behalf of all persons or entities who held First Bancshares, Inc. (NASDAQ: FBMS) securities on November 9, 2016 (the “Class Period”).
On October 12, 2016, in order to fund the proposed acquisition of Iberville, the Company entered into Securities Purchase Agreements with a limited number of institutional and other accredited investors, including certain directors of the Company, to sell a
total of3,563,380 shares of Series E Preferred Stock, at a price of$17.75 per share, for aggregate gross proceeds of $63.25 million. This provided Company insiders a discount to the Company's share price.
Defendants now ask the Company's shareholders to vote in favor of approving the issuance of common stock, so that the Series E Preferred Shares will convert into shares of common stock. If the Company's shareholders do not approve the issuance of common stock, then the Company "will be required to pay dividends on the Series E Preferred Stock, on a non-cumulative basis, at an annual rate of 6% of the liquidation value of the Series E Preferred Stock, which is $17. 75." Shareholders have no choice but to approve the issuance of the discounted common stock to defendants in order for the Company to not have to continuously pay out dividends on the Series E Preferred Shares, which will amount to roughly $60 million.
If you held First Bancshares securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
On October 12, 2016, in order to fund the proposed acquisition of Iberville, the Company entered into Securities Purchase Agreements with a limited number of institutional and other accredited investors, including certain directors of the Company, to sell a
total of3,563,380 shares of Series E Preferred Stock, at a price of$17.75 per share, for aggregate gross proceeds of $63.25 million. This provided Company insiders a discount to the Company's share price.
Defendants now ask the Company's shareholders to vote in favor of approving the issuance of common stock, so that the Series E Preferred Shares will convert into shares of common stock. If the Company's shareholders do not approve the issuance of common stock, then the Company "will be required to pay dividends on the Series E Preferred Stock, on a non-cumulative basis, at an annual rate of 6% of the liquidation value of the Series E Preferred Stock, which is $17. 75." Shareholders have no choice but to approve the issuance of the discounted common stock to defendants in order for the Company to not have to continuously pay out dividends on the Series E Preferred Shares, which will amount to roughly $60 million.
If you held First Bancshares securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.