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Patriot National Bancorp Inc. (NASDAQ:PNBK), currently trading at $1.07 per share with a market capitalization of just $4.26 million, has announced its receipt of an exception from Nasdaq’s shareholder approval rules, leveraging the financial viability exception outlined in Nasdaq Listing Rule 5635(f). This development was disclosed in a Form 8-K filing with the Securities and Exchange Commission today. According to InvestingPro data, the bank’s stock has experienced significant volatility, declining over 70% in the past year.
The Stamford, Connecticut-based commercial bank, with its principal executive offices located at 900 Bedford Street, sought the exemption as a strategic move to maintain its listing on the Nasdaq Global Market. The exception allows the bank to bypass the usual requirement of obtaining shareholder approval under certain circumstances that affect the company’s financial stability. InvestingPro analysis reveals concerning financial metrics, including negative earnings per share of -$7.41 and a return on assets of -2.79%, highlighting the challenges facing the institution.
As per the filing, Patriot National Bancorp will be mailing a notice to its shareholders detailing the reliance on this financial viability exception, complying with the Nasdaq Listing Rules. The notice included as Exhibit 99.1 in the 8-K report will inform shareholders of the specifics surrounding this exception.
The information provided in the 8-K form, including the attached Exhibit 99.1, is considered furnished and not filed. Therefore, it is not subject to Section 18 of the Securities Exchange Act’s liabilities, nor is it incorporated by reference in any filing under the Securities Act or the Exchange Act unless explicitly stated in such a filing.
Patriot National Bancorp, operating under the national commercial banks industry classification, is identified by the Central Index Key (CIK) number 0001098146 and has an IRS number of 061559137. The company’s fiscal year ends on December 31.
This news is based on the official statement from the company as provided in the SEC filing. While the stock currently trades at a low Price/Book multiple of 0.26, InvestingPro subscribers have access to over 10 additional key insights and detailed financial metrics that could help assess the company’s future prospects.
In other recent news, Patriot National Bancorp Inc. reported a preliminary net loss of approximately $9.5 million for the last quarter of 2024, driven primarily by a $7.7 million provision for credit losses related to two large commercial real estate loans. The bank has entered into a material definitive agreement to extend the grace period for interest payments on its Senior Notes, with plans to potentially raise capital through the sale of common and preferred stock worth approximately $60 million. Additionally, Patriot National Bancorp has entered into a regulatory agreement with the Office of the Comptroller of the Currency, requiring remedial actions to enhance compliance and risk management practices.
The company appointed Steven Sugarman as its new President as part of a strategic review aimed at maximizing shareholder value. In another development, shareholders elected six directors and ratified RSM US LLP as the independent registered public accounting firm for the upcoming fiscal year. The bank is also exploring strategic options with the assistance of Performance Trust Capital Partners (WA:CPAP), LLC, including potential capital raises or mergers. These developments reflect ongoing efforts to navigate financial challenges and regulatory requirements.
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