“We did not have any forewarning that the Orders were going to be issued by the SEC, although we have known that action by the SEC was a possibility and provided disclosure in that regard in our three most recent annual reports,” CEO Mike Falcone said in a press release.
“Although we do not control the timing of any resolution with the SEC, we are actively pursuing a timely and favorable resolution,” he said.
The company said its trading suspension order will remain in effect for the ten-business-day period ending Oct. 1 with shares eligible to resume trading on Oct. 2.
“Before such date, we intend to reach out to market makers in order to assist them in satisfying regulatory requirements necessary to resume making a market in our common shares. Notwithstanding these efforts, when trading resumes it is reasonable to expect the volume and bid/ask spreads to remain outside of recent norms until a sufficient number of market makers re-establish a market in our shares,” MuniMae said.
“The company will vigorously pursue a favorable disposition of the order instituting administrative proceedings. As this is an active case, the company cannot announce an expected result or range of outcomes at this time, but we are seeking a resolution in the best interests of our shareholders.”
Upon the resumption of trading on Oct. 2, the company plans to continue to be a buyer of shares through its existing buyback plan allowing it to purchase shares up to a share price of $1.53 per share, subject to market forces and volume and pricing limitations within regulatory parameters.
“The maximum price limit will automatically change as of the date we file our Form 10-Q for the quarter ending Sept. 30 to reflect any changes in the reported common shareholders' equity per share of the company reflected in that filing,” MuniMae said.
The company said it plans to host a conference call as soon as it has more information to share and no later than Oct. 1.
