The Board of EJF Investments Ltd (“EJFI” or “the Company”) is pleased to announce an innovative proposal to provide increased liquidity to the shareholders of the Company.
Under the proposal, shareholders would be eligible to tender some or all their ordinary shares on a periodic basis, subject to the total number of shares tendered per annum not exceeding an overall limit of 5% of the total issued ordinary shares.
The Board would have discretion regarding the frequency and price of the periodic tenders. Tenders up to the price of the Company’s net asset value (“NAV”) less any expenses and costs of the tender would be permitted.
The Board believes that the proposal, if implemented, has the potential both to increase liquidity in the ordinary shares of the Company and narrow the current trading discount to NAV.
Neal Wilson, the CEO of the Manager of the Company, EJF Capital LLC, stated: “Combined with EJF’s previously announced management fee reinvestment program of quarterly purchases of shares in the open market, this proposal will further enhance shareholder liquidity.”
“This solution has a proven track record in the US where closed end funds, both public and private, use a similar mechanism to provide periodic liquidity to shareholders.”
The proposal will be voted on by shareholders at an Extraordinary General Meeting held on 17 December 2024.
EJFI listed on the LSE in April 2017. From inception through 31 October 2024, EJFI has provided an Annualised Total Return of 8.74% on its NAV and its share price has increased 10.34% year to date. EJFI pays a quarterly dividend which represents a yield of 9.55% on the Company’s current trading price.
