Shares of Republic First Bancorp plummeted close to 50% in premarket trading on Tuesday after it told investors that it will be delisted on Wednesday.
In a statement, the Philadelphia-based parent of Republic First Bank, dba Republic Bank, said it was notified by the Nasdaq’s Listing Qualifications Department that it will no longer be listed on the exchange because of its failure to file its 2022 Form 10-K annual report with the Securities and Exchange Commission.
Republic said it expects its common stock to quickly begin trading on the OTC marketplace so that investors can continue to access accurate information, including stock price quotes, and execute trades.
“Republic’s Board of Directors and new executive team have been working with the Company’s auditor and outside advisors to complete and file all delayed reports as soon as practicable,” the lender said.
“Republic’s audit and financial filings have been delayed, in part, by the former executive team’s failure to maintain adequate internal controls and related to a systems conversion implemented in June 2022.”
The lender said it may apply to list on a major exchange once it files all delayed reports and meets other listing requirements.
“The new management team remains focused on implementing Republic's strategic plan, which includes a renewed emphasis on core banking services, strengthening franchise value in its highly attractive Metropolitan Philadelphia and Southern New Jersey markets and improving operational efficiencies,” it added.
Republic’s shares were down 45% at $0.39 ahead of the opening bell.
Contact the author at stephen.gunnion@proactiveinvestors.com