In a direct bid to improve the liquidity of its corporate stock, the Board of Directors at Horizon Bancorp today has announced declaration of a 3-for-2 stock split on the bank holding company’s authorized and outstanding shares of common stock.
That move, revealed this morning, means that all shareholders of record as of the close of business on Thursday, May 31, 2018 — the record date — will be entitled to receive an additional half-share for each share of common stock they currently hold.
Each shareholder will receive cash in lieu of any fractional share of common stock that they otherwise would have been entitled to receive in connection with the split, except that those shareholders participating in Horizon’s dividend reinvestment and stock purchase plans will have fractional shares of common stock credited to their accounts. The price paid for fractional shares will be based on the average closing price of a share of common stock as reported on the NASDAQ Global Select Market for the five trading days immediately prior to the record date.
In connection with the 3-for-2 stock split, the Board of Directors has also approved an amendment to Horizon’s Articles of Incorporation to increase the amount of authorized common shares in the same proportion. The amendment will become effective upon approval by the Indiana Secretary of State, and the 66 million common shares presently authorized will become 99 million authorized common shares.
The additional shares issued in the stock split are expected to be distributed to shareholders on June 15, 2018. Horizon common shares are expected to begin trading on a split-adjusted basis on or about June 18, 2018, or such other date specified by NASDAQ.
Craig M. Dwight is Horizon’s Chairman and Chief Executive Officer. He says: “Horizon has a strong and stable shareholder base, and we appreciate the large number of long-term, loyal shareholders. This split is intended to improve the liquidity for our stock by making more shares available in the marketplace, and to make our stock affordable and attractive to investors.” He adds, “We believe Horizon offers the opportunity to invest in a growing community bank that has consistently offered an attractive cash dividend and solid growth.”
The stock split will increase Horizon’s outstanding shares from approximately 25.6 million shares prior to the split to approximately 38.4 million shares afterward.
Horizon, which is headquartered in Michigan City, Indiana, has multiple branch banks throughout Michigan’s Great Southwest and elsewhere in the Midwest.
