Business
Newtek Business Services Corp. Receives Shareholder Approval to Discontinue the Company’s Election to be Regulated Under the Investment Company Act of 1940
BOCA RATON, Fla., June 01, 2022 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (NASDAQ: NEWT), an internally managed business development company
About this update from Newtekone, Inc.
[{"type":"text","content":"BOCA RATON, Fla., June 01, 2022 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (NASDAQ: NEWT), an internally managed business development company (“BDC”), announced that earlier today at a special meeting of shareholders (the “Special Meeting”), Newtek shareholders overwhelmingly approved a proposal authorizing the Company’s Board of Directors to discontinue the Company’s election to be regulated under the Investment Company Act of 1940, as amended (the “1940 Act”) (subject to certain regulatory approvals and closing conditions described in the Company’s Proxy Statement dated May 2, 2022) (the “Proposal”). As disclosed in the Company’s Form 8-K filed today, 89% of the votes cast at the Special Meeting were in favor of the Proposal. As disclosed on August 2, 2021, the Company entered into a stock purchase agreement to acquire all of the issued and outstanding stock of the National Bank of New York City (“NBNYC”) (the “Transaction”), subject to regulatory approvals and closing conditions. Following the closing of the Transaction, the Company intends to rename NBNYC as Newtek Bank & Trust, N.A., to operate as a bank holding company, and to elect financial holding company status. The Company’s Board of Directors will not seek to discontinue the Company’s election as a BDC under the 1940 Act until after the Company receives the necessary regulatory approvals of the Transaction and after Transaction closing conditions are met. Any discontinuance of the Company’s BDC election will become effective upon receipt by the SEC of a Form N-54C. After the Form N-54C is filed with the SEC, the Company will no longer be subject to the regulatory provisions of the 1940 Act applicable to BDCs. The Company anticipates the Transaction to be completed during the third quarter of 2022. Barry Sloane, Chairman, President and Chief Executive Officer said, “We are extraordinarily pleased with the results announced today at our Special Meeting of Shareholders. As we close out the results of the Special Meeting proxy vote to give the Board authorization to discontinue the Company’s election to be regulated under 1940 Act, as we have previously stated, management and the Board believe it is in the long-term best interest of the Company to have the authorization and the option to discontinue the election and to move forward with the acquisition of NBNYC,...