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Four Oaks Fincorp board seeks to effect reverse stock split

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Four Oaks Fincorp board seeks to effect reverse stock split

The Four Oaks, N.C.-based Four Oaks Fincorp Inc. board proposed an amendment to itsarticles of incorporation that would effect a 1-for-5 reverse stock split, accordingto a preliminary proxy statement filed April 1.

The board agreed it will exercise discretionary authorityto effect the reverse stock split on or before Dec. 31, or it will re-submit theproposal to shareholders, the filing noted.

The reverse stock split is intended to increase the per-sharemarket price of the company's common stock, make the stock more attractive to abroader range of investors and provide the board increased flexibility to pursuefuture actions, the filing said.

Shareholders are set to vote on this proposal, and othermatters, May 23.