Financial Stocks Paring Earlier Declines; Paulson Capital Surges Following New Funding Plan, Reverse Stock Split

By Staff,

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Top Financial Stocks

JPM -0.15%

BAC +0.94%

WFC +0.09%

C -0.50%

USB +0.49%

Financial stocks have reversed earlier losses and are now little changed near the close with the NYSE Financial Sector Index sinking 0.2% and the S&P Financial 100 Index gaining about 0.1%.

In company news, Paulson Capital Corp. ( PLCC ) is up nearly 22% at $1.35 a share, holding near the top of its session range and the struggling investment firm last night disclosing a $5.25-million financing effort as well as a proposed reverse split of its stock.

According to a new regulatory filing, PLCC late last month arranged for a private placement of equity units with an unidentified investor or group of investors. The offering consisted of 287,773 shares of common stock and 500,000 shares of Series A preferred stock as well as five-year Class A and Class B warrants to purchase additional stock.

Each preferred share is convertible into 2.305640603 shares of common stock. The Class A warrants are exercisable at $0.35 each starting in six months to buy up to 7.5 million shares of Series B preferred stock that can be exchanged on a 1-for-1 basis for PLCC common stock. The Class B warrants will purchase up to 13.6 million Class B shares.

The company also said it will soon seek shareholder approval for a reverse stock split of between 2-for-1 and 10-for-1 at any time over the next 18 months following the shareholder vote.

In other sector news,

(-) ICE, Reportedly has hired three investment banks to assist with plans to sell Euronext exchanges in Paris, Lisbon, Brussels and Amsterdam to raise a portion of the $8.2 billion it is offering to acquire NYSE Euronext ( NYX ).

(-) EPAY, Q4 EPS of $0.32 beats by $0.03 per share. Revenue rises 5.9% over last year to $65 mln, matching the consensus call. Also announces the purchase of financial messaging firms Sterci SA and Simplex GTP Ltd. Terms will be disclosed at a later date.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: NYX , PLCC

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