According to the S-8 filing, the shares are part of a 2010 "Omnibus Incentive Plan" to reward key employees of the nonbank lender. The registration price is $13.81. Friday morning its shares were trading at $14.29.
Impac notes that, specifically, the purpose of the program is to retain “highly competent employees, directors and consultants, to act as an incentive in motivating selected employees, directors and consultants of the Company and its Affiliates to achieve long-term corporate objectives and to enable stock-based and cash-based incentive awards…”
On Monday Impac’s share price jumped 15% on heavy volume—without explanation—prompting the New York Stock Exchange to send it a notice about unusual activity.
K&L Gates LLP is Impac’s legal advisor on the registration.
A company spokesman told National Mortgage News that the company does not know why its share price increased so dramatically on that day. (See the Monday paper edition of NMN for further analysis.)
