Sept 5 - Intermountain Community Bancorp (OTCBB:IMCB) will implement effective as of the close of business on Oct. 5, 2012, a 1-for-10 reverse stock split of Intermountain's common stock (both voting and nonvoting).
As fixed by the board of directors, shareholders will receive one new share of common stock for every 10 shares of stock they owned prior to the reverse stock split. The effect of the reverse stock split will be to increase the per share market price of Intermountain's common stock to at least $4 per share. Following the split, the company will apply with NASDAQ to list its shares of voting common stock on the NASDAQ Capital Market.
"The reverse stock split will allow our stock to be more broadly traded on NASDAQ and satisfies a contractual obligation to our new investors," said Curt Hecker, president and CEO of Intermountain.
As a result of the reverse stock split, every 10 shares of the company's common stock issued and outstanding at the end of the effective date of Oct. 5, 2012, will be combined into one share of common stock. In addition, all fractional shares will be rounded up to the nearest whole share.
The reverse stock split will reduce the number of shares of outstanding voting and nonvoting common stock from approximately 26 million and 38.4 million shares to approximately 2.6 million and 3.8 million shares, respectively. The reverse stock split will also reduce the number of authorized shares of voting and nonvoting common stock from 300 million and 100 million shares to 30 million and 10 million shares, respectively. Proportional adjustments will also be made to the conversion or exercise rights under the company's outstanding warrants, stock options and other common stock-based equity grants outstanding immediately prior to the effectiveness of the reverse stock split.
Shareholders with certificated shares will be required to return their stock certificates for "book-entry" shares representing the appropriate number of shares of common stock resulting from the reverse stock split. The Company's stock transfer agent, American Stock Transfer and Trust Company, LLC, will mail instructions to registered shareholders on how to complete the exchange.
About Intermountain Community Bancorp
Intermountain is headquartered in Sandpoint, Idaho, and operates as four divisions with 19 banking locations in three states. Its banking subsidiary, Panhandle State Bank, offers financial services through northern Idaho offices in Sandpoint, Ponderay, Bonners Ferry, Priest River, Coeur d'Alene, Post Falls, Rathdrum and Kellogg. Intermountain Community Bank, a division of Panhandle State Bank, operates branches in southwest Idaho in Weiser, Payette, Nampa, Caldwell and Fruitland, as well as in Ontario, Ore. Intermountain Community Bank Washington, a division of Panhandle State Bank, operates branches in downtown Spokane and Spokane Valley. Magic Valley Bank, a division of Panhandle State Bank, operates branches in Twin Falls and Gooding, Idaho.