Finance Of America Companies Inc Stock Price, News & Analysis

Finance of America Companies Inc. (NYSE: FOA) has announced its planned 1-for-10 reverse stock split will take effect on July 25, 2024, at 5:00 p.m. Eastern Time. The company's Class A Common Stock will begin trading on a split-adjusted basis on the NYSE on July 26, 2024, under the same symbol (FOA). This move is primarily intended to increase the per share trading price to meet NYSE's continued listing criteria.

Key points:

• New CUSIP number: 31738L 206
• No fractional shares will be issued; cash proceeds will be distributed instead
• Adjustments will be made to warrants, equity-based awards, and other agreements
• Public warrants exercise price will be $115 post-split
• The number of authorized shares and par value remain unchanged

Finance of America (FOA) announced an Exchange Offer Support Agreement with holders of approximately 71.1% of its outstanding 2025 Unsecured Senior Notes. The agreement involves exchanging these notes for up to $200 million in Senior Secured First Lien Notes due 2026 and up to $150 million in Exchangeable Senior First Lien Notes due 2029. On June 24, 2024, the Libman Parties, who hold additional notes, also agreed to participate, raising the participation to about 93.1% of the total principal amount of the 2025 Notes. This move aims to enhance the company's capital structure and promote sustainable growth and profitability. More details are available in a Form 8-K filed with the SEC on June 25, 2024.

A group of Voxtur shareholders, including former chairman Nicholas H. Smith, is pushing for a major overhaul of the company's board at the upcoming Annual General and Special Meeting (AGSM) scheduled for June 28, 2024. The Voxtur Shareholders for Accountability, holding about 19% of the company's shares, are advocating for six new board members due to significant financial declines under the current management. The company has faced losses in each of the past five years, including a Q4 2023 adjusted EBITDA loss of C$3.9 million and a Q1 2024 loss of C$665,000. The group's nominees include seasoned professionals like Alan P. Qureshi, who is proposed as the new CEO. They aim to implement a long-term strategic plan, streamline expenses, and enhance transparency in financial reporting. The current board is criticized for lacking a coherent strategic plan, experiencing high turnover, and incurring excessive costs.

Finance of America Companies Inc. reported a net loss of $16 million or $0.06 per share for the first quarter of 2024. Adjusted EBITDA for the quarter was near break-even at a loss of $1 million. The company saw a 69% improvement in pre-tax basis in Retirement Solutions. Total revenues decreased by 73% compared to the prior quarter. Total assets and liabilities increased by 2% each from the previous quarter. The company remains focused on returning to sustained profitability.

Finance of America Reverse , a leading provider of home equity-based financing solutions, has announced plans to consolidate its American Advisors Group (AAG) and Finance of America Reverse (FAR) brands under the single brand name, Finance of America. The change is expected to take effect in the third quarter of 2024, subject to regulatory considerations. This strategic move aims to drive long-term growth, streamline the company's offering, and enhance the customer experience.