Boston, MA 03/25/2014 (wallstreetpr) – Investigation proceedings have been declared against bank holding company Peapack-Gladstone Financial Corp (NASDAQ:PGC). The bank is being investigated in connection with potential breach of fiduciary duties.
The company owns total assets valued at $1.97 billion as of the end of 2013. PGC provides a variety of banking services and financial solutions through its land-based locations and online platforms. It serves non-profits, businesses and individual customers. The company also provides wealth management.
Impact of share dilution
As concerns the investigation that is being spearheaded by Juan E. Monteverde, the company’s practice is being looked into for possible breach of fiduciary duties related to a long-term stock inventive program. Last week Peapack-Gladstone Financial Corp (NASDAQ:PGC) sought shareholder approval for the so-called 2012 Long-Term Incentive Plan, but questions have been raised about whether such approvals are in the best interest of the investors.
The called-for approval will allow the company to issue about 300,000 common stock shares under the long-term stock incentive program, yet this will result in dilutive effective on the company’s common stock, thus eroding value for current shareholders.
Thus, on behalf of investors, the investigation seeks to unearth if the management of Peapack-Gladstone Financial Corp (NASDAQ:PGC) breached some good-practice provisions while putting forward a call for shareholder vote to approve common stock issuance which has dilutive aftermath.
Peapack-Gladstone Financial Corp (NASDAQ:PGC) current has market cap of $262.17 million and 11.89 million outstanding shares.
Stock performance
Despite the investigation proceedings announced against Peapack-Gladstone Financial Corp (NASDAQ:PGC), shares of the company had little to stop them on their way up during trading Monday. Shares rose 9.7 percent to $22.05 by closing bell. The heavy volume trading session saw shares shifting hands between $20.05 and $22.35 throughout the day, thus establishing a new high price level. Trading opened with shares at $20.06.
The past 52-week time-frame has seen the shares changing hands between $13.87 and $22.35.
