Municipal Mortgage & Equity in Baltimore will change its name to MMA Capital Management LLC, effective Sept. 29.
The new name "ties our past and future," said Michael Falcone, chief executive officer, in a press release Friday. After the sale of the TE Bond subsidiary last year and the conversion to a corporation for tax purposes, the company has changed from a limited liability, tax-exempt debt and equity firm to an investment firm.
The company's major business lines will continue to operate under the brand names MuniMae, for the tax-exempt bond market, and as HIS, for the international investment management businesses, Falcone explained. The company's website homepage also will be renamed.
The company also said that it is planning a one-for-five reverse stock split effective as of close of business on Monday, designed "to improve the tradability" of its stock and "trade on one of the nationally recognized exchanges before yearend," Falcone said.
The reverse stock split will help achieve that goal by enabling the company to trade shares at a price "that is consistently above the minimum price set by the national exchanges." Hence, the company may create fractional shares that will be offered to "certain shareholders" as part of the reverse stock split, which will be redeemed by the company at a price that is equal to the shares closing price on Sept. 26.
Most shareholders do not have to take any actions as the shares will automatically adjust in their brokerage accounts. The maximum number of shares authorized under both employee and non-employee plans will be reduced proportionately under the buyback program from seven million to 1.4 million. The maximum buyback price will be $9.60 per share.
