California First Leasing Corporation Announces Tender Offer for Share Buyback Program
On May 20, 2025, California First Leasing Corporation (OTCQX: CFNB), commonly known as CalFirst Leasing, unveiled a tender offer approved by its Board of Directors, aimed at repurchasing up to 330,000 shares of its own common stock. This repurchase program represents around 3.5% of the company's outstanding shares, offering an opportunity for shareholders to sell their shares back to the company at a set price of $18.50 each.
The announcement comes at a time when the financial landscape presents unique opportunities for companies like CalFirst Leasing to leverage their available cash to benefit shareholders. Patrick Paddon, the CEO, remarked on the strategic significance of the tender offer, stating it allows shareholders—especially those with substantial stakes who may otherwise find difficulty selling in the market—to liquidate part or all of their shares without incurring broker fees usually associated with traditional market transactions.
As per the company's plan, the tender offer commenced immediately and is expected to close at 5:00 PM New York City time on June 24, 2025, unless extended. As of May 19, 2025, the last reported trading price of CalFirst Leasing’s common stock was $18.70 per share. This slight difference between the tender offer price and the market price may also serve as an incentive for shareholders to accept the offer, particularly in circumstances where liquidating shares on the open market could be challenging due to limited trading volumes.
Shareholders have the right to make their tender offers for shares prior to the expiration of the tender period, with the option to withdraw their offers anytime before the closing date. If demand for the shares exceeds the 330,000 shares available for repurchase, shares will be bought back on a pro-rata basis, although precedence will be given to shareholders looking to sell 'odd lots'.
The company has made it clear that neither it nor its Board is advising shareholders on whether to participate in this tender offer. Independent information is available through Georgeson LLC, acting as the information agent for this transaction, while Computershare Trust Company, N.A. will serve as the depositary. Any decision from shareholders should be guided by careful consideration of all materials related to the tender offer that CalFirst will distribute, which include important information regulated under the laws pertaining to securities.
CalFirst Leasing, established as a non-diversified closed-end investment company under the Investment Company Act of 1940 in February 2022, continues to combine leasing operations with equity and investment strategies aimed at maximizing returns while ensuring financial stability. In this context, the share buyback not only complements its business strategy but reflects management's commitment to maintaining shareholder value amidst fluctuating economic conditions.
It's also worth noting that while CalFirst is seeking to manage its capital effectively, potential risks exist, such as uncertainty regarding how many shareholders will participate in the tender offer. Previous market conditions demonstrate that shareholder behavior can deeply affect the outcome of such offers, underscoring the need for potential participants to analyze their options cautiously.
In summary, CalFirst Leasing's announcement of a tender offer underscores their commitment to creating value for shareholders and provides a viable alternative for those holding shares. As the closing date approaches, it remains to be seen how shareholders respond to this initiative, reflecting on their options in a complex market environment.
The announcement comes at a time when the financial landscape presents unique opportunities for companies like CalFirst Leasing to leverage their available cash to benefit shareholders. Patrick Paddon, the CEO, remarked on the strategic significance of the tender offer, stating it allows shareholders—especially those with substantial stakes who may otherwise find difficulty selling in the market—to liquidate part or all of their shares without incurring broker fees usually associated with traditional market transactions.
As per the company's plan, the tender offer commenced immediately and is expected to close at 5:00 PM New York City time on June 24, 2025, unless extended. As of May 19, 2025, the last reported trading price of CalFirst Leasing’s common stock was $18.70 per share. This slight difference between the tender offer price and the market price may also serve as an incentive for shareholders to accept the offer, particularly in circumstances where liquidating shares on the open market could be challenging due to limited trading volumes.
Shareholders have the right to make their tender offers for shares prior to the expiration of the tender period, with the option to withdraw their offers anytime before the closing date. If demand for the shares exceeds the 330,000 shares available for repurchase, shares will be bought back on a pro-rata basis, although precedence will be given to shareholders looking to sell 'odd lots'.
The company has made it clear that neither it nor its Board is advising shareholders on whether to participate in this tender offer. Independent information is available through Georgeson LLC, acting as the information agent for this transaction, while Computershare Trust Company, N.A. will serve as the depositary. Any decision from shareholders should be guided by careful consideration of all materials related to the tender offer that CalFirst will distribute, which include important information regulated under the laws pertaining to securities.
CalFirst Leasing, established as a non-diversified closed-end investment company under the Investment Company Act of 1940 in February 2022, continues to combine leasing operations with equity and investment strategies aimed at maximizing returns while ensuring financial stability. In this context, the share buyback not only complements its business strategy but reflects management's commitment to maintaining shareholder value amidst fluctuating economic conditions.
It's also worth noting that while CalFirst is seeking to manage its capital effectively, potential risks exist, such as uncertainty regarding how many shareholders will participate in the tender offer. Previous market conditions demonstrate that shareholder behavior can deeply affect the outcome of such offers, underscoring the need for potential participants to analyze their options cautiously.
In summary, CalFirst Leasing's announcement of a tender offer underscores their commitment to creating value for shareholders and provides a viable alternative for those holding shares. As the closing date approaches, it remains to be seen how shareholders respond to this initiative, reflecting on their options in a complex market environment.
Topics Financial Services & Investing）
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