Shareholders approve two key stock offerings at Home Savings

Approval means the bank can continue raising $47.1 million

Staff report

youngstown

Shareholders at the Home Savings and Loan Co. of Youngstown passed two key measures that will allow the bank more leeway to continue raising capital and move forward with the growth it has enjoyed in recent months.

The company asked its shareholders during a special meeting on Tuesday at Powers Auditorium to allow it to convert 7,942 preferred shares it issued in March to private equity firms and other investors at $2.75 each into 7,942,000 common shares. Shareholders passed the measure, approving it by a margin of 90 percent for and 10 percent against.

With the conversion of those preferred shares into common shares, the investment becomes equity for the bank that it is not required to pay on. The second key matter, which will allow the bank to issue 755,820 common shares, at $2.75 each, to insiders at the company, such as its board members, passed by a margin of 89 percent for and 11 percent against.

Both stock offerings, coupled with a separate measure to raise $5 million among current shareholders, will help the bank raise $47.1 million in all.