Clearwater company is changing to the Nasdaq National Market and making 2.4-million more shares available.
By HELEN HUNTLEY
Published April 9, 2004
CLEARWATER - Shareholders of Nicholas Financial Inc. may finally get a break. The car finance company has compiled a strong record of growth and profitability, but its stock has not attracted widespread interest, partly because its shares have been closely held and thinly traded.
Now Nicholas of Clearwater is planning an offering that will put an additional 2.4-million shares in circulation. The company is selling 1.5-million shares, which it hopes will net $14-million to pay down debt. The two largest shareholder groups, which together control nearly 60 percent of the stock, are selling 900,000 shares.
As part of the deal, founder and chief executive Peter Vosotas will sell a third of his holdings, reducing his stake in the company to 16 percent.
In addition, Nicholas stock moved this week from the Nasdaq Small Cap Market, where it only traded about 7,000 shares a day, to the more visible Nasdaq National Market.
Nicholas officials hope the moves will attract investors. A year ago the company had about 500 shareholders. Although that number has grown to more than 1,000, it has not been enough to create an active market.
"We'd love to have several thousand shareholders so the stock doesn't jump $1 on a 100-share trade," Vosotas said.
Nicholas had $22-million in revenues last fiscal year. Ferris, Baker Watts of Baltimore is the managing underwriter for the offering, which will give Nicholas 6.6-million shares outstanding.
The stock closed Thursday at $10.95 a share, up 46 cents.
