Shareholders of Newtek Business Services Corp. will convene July 26 during a special meeting of shareholders to vote whether to approve lowering the company's required minimum asset coverage ratio to 150% from 200%.
The board already approved the proposal April 27. As a result, the company will be subject to 150% asset coverage a year after the board's approval. If shareholders voted in favor of the proposal, the reduction in asset coverage ratio will take effect after the meeting.
Additionally, shareholders will vote on a proposal that would allow the company to sell common shares at a price below their then current net asset value per share.
The sale will be done in the next 12 months and will be subject to certain conditions, including that the cumulative number of shares sold does not exceed 20% of its then outstanding common stock immediately prior to each such sale. The board recommended shareholders to vote for this proposal.