Celtic Investment Inc., a financial services holding company based in Salt Lake City, reported Thursday that its shareholders have approved a going private transaction that included a 1-for-50,000 reverse stock split of the outstanding shares of the company's common stock.
About 81 percent of the votes entitled to be cast were cast, the company stated, and about 99 percent of the votes cast favored the reverse stock split proposal.
The transaction, effective March 10, holds that shareholders who owned fewer than 50,000 shares of Celtic's common stock prior to the reverse stock split now own a temporary document or right that represents a fractional portion of a share of Celtic stock, and are no longer Celtic shareholders. Shareholders holding more than 50,000 shares of Celtic's common stock now own one share of Celtic common stock for every 50,000 shares they owned prior to the reverse split.
Celtic's wholly owned subsidiary, Celtic Bank Corp., is an FDIC-insured state-chartered industrial bank.