BankGuam Holding (BKGM) Risk Analysis
Risk Overview Q3, 2022
Source: the company's latest filing for the period ended Sep 30, 2022, filed Nov 10, 2022
Risk Change Over Time
- Share Price & Shareholder Rights - Risk 1The reverse stock split may decrease the liquidity of the shares of our common stock and have other impacts on our common stock, our business and our prospects.
On October 31, 2022, we effected a 1-for-500 reverse stock split of our common stock. The liquidity of the shares of our common stock may be affected adversely by the reverse stock split given the reduced number of shares that are outstanding following the reverse stock split. In addition, the reverse stock split likely increased the number of stockholders who own odd lots (less than 100 shares) of our common stock, creating the potential for such stockholders to experience an increase in the cost of selling their shares and greater difficulty effecting such sales.
Risk Highlights Q3, 2022
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 37
- Share Price & Shareholder Rights - Risk 1ChangedThe reverse stock split may decrease the liquidity of the shares of our common stock and have other impacts on our common stock, our business and our prospects.
On October 31, 2022, we effected a 1-for-500 reverse stock split of our common stock. The liquidity of the shares of our common stock may be affected adversely by the reverse stock split given the reduced number of shares that are outstanding following the reverse stock split. In addition, the reverse stock split likely increased the number of stockholders who own odd lots (less than 100 shares) of our common stock, creating the potential for such stockholders to experience an increase in the cost of selling their shares and greater difficulty effecting such sales.
- Share Price & Shareholder Rights - Risk 2AddedIf we terminate our SEC reporting obligations, there will be less information regarding the Company and its financial results available, and we will no longer be subject to certain obligations applicable to SEC registrants, which could impact an investment in our common stock.
After completion of the reverse stock split, we intend to terminate our SEC reporting obligations and cease to file annual, quarterly, current, and other reports and documents with the SEC. While we intend to continue to prepare audited annual financial statements which will be made available to shareholders through our website, we will not be providing periodic reports in the format currently required of us under the provisions of the Exchange Act and, as a result, continuing shareholders will have access to less information about us and our business, operations, and financial performance, which could result in a significant decrease in the value of our common stock. We would also no longer be subject to the provisions of the Sarbanes-Oxley Act (although the Board of Directors may decide, in its sole discretion, to continue to maintain compliance with some or all of the provisions of the Sarbanes-Oxley Act) and certain of the liability provisions of the Exchange Act. Our executive officers, directors and 10% shareholders will no longer be required to file reports relating to their transactions in our common stock with the SEC. In addition, our executive officers, directors and 10% shareholders will no longer be subject to the short-swing profits recovery provisions of the Exchange Act, and persons acquiring more than 5% of our common stock will no longer be required to report their beneficial ownership under the Exchange Act.
- Share Price & Shareholder Rights - Risk 3Our principal shareholders have significant influence over us, and their interests could conflict with those of our other shareholders.
Currently, approximately 41.0% of the outstanding shares of our voting stock are subject a voting trust agreement granting Lourdes A. Leon Guerrero certain rights as trustee of the voting trust, including the power and discretion to vote the shares subject to the voting trust agreement. As a result, Ms. Leon Guerrero is able to influence matters requiring approval by our shareholders, including the election of directors and the approval of mergers or other extraordinary transactions, subject to the limitations on her activities set forth in the voting trust agreement which is an exhibit to this report. Ms. Leon Guerrero may have interests that differ from other shareholders and may vote in a way with which other shareholders disagree and which may be adverse to their interests. The concentration of ownership may also have the effect of delaying, preventing, or deterring a change of control of the Company, could deprive our shareholders of an opportunity to receive a premium for their common stock as part of a private sale of their shares of the Company, subject us to the influence of a presently unknown third party if the terms of the voting trust agreement change and might ultimately affect the market price of our common stock.
- Share Price & Shareholder Rights - Risk 4The price of our common stock may fluctuate significantly, and this may make it difficult for stockholders to resell shares of common stock at times or at prices they find attractive.
The Company common stock is traded in the Over-the-Counter market under the symbol "BKGM." The trading volume has historically been substantially less than that of larger financial services companies. This may make it difficult for stockholders to resell shares of common stock at times or at prices they find attractive. Stock price volatility may also make it more difficult to sell common stock quickly and at attractive prices.
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.