Impac Mortgage Holdings (IMH)

[dpsimswm]

A Mortgage Billionaire Bids for the Commanders NFL Franchise, GSE Shareholders and Impac's Restructuring

The NFL's Commanders Franchise may sell for $7 Billion, GSE Shareholders had a setback with a mistrial in DC, Impac's preferred is going to be swapped on November 15th.

https://ridgehaven.substack.com/p/a-mortgage-billionaire-bids-for-the?sd=pf

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Details on Impac’s November 15th Preferred Clean-up

Judging from market prices for the Impac Preferred B (IMPHP) and Preferred C shares (IMPHO), there is still some confusion about what happens on November 15th.

Impac Mortgage Holdings, Inc. Announces Date of Redemption of Series B Preferred Stock and Series C Preferred Stock

IRVINE, Calif., October 28, 2022--(BUSINESS WIRE)--Impac Mortgage Holdings, Inc. (NYSE American: IMH) (the "Company") today announced it intends to redeem all outstanding shares of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share (CUSIP: 45254P300) ("Series B Preferred Stock"), and all outstanding shares of the Company’s 9.125% Series C Cumulative Redeemable Preferred Stock, par value $0.01 per share (CUSIP: 45254P409) (the "Series C Preferred Stock," and together with the Series B Preferred Stock, the "Preferred Stock"). Preferred Stock held through the Depository Trust Company will be redeemed in accordance with the applicable procedures of the Depository Trust Company.

The redemption date will be November 15, 2022 (the "Redemption Date"). Each outstanding share of Series B Preferred Stock will be redeemed for (i) thirty (30) shares of the Company’s 8.25% Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share ("New Preferred Stock"), and (ii) 13.33 shares of the Company’s Common Stock, par value $0.01 per share (the "Common Stock") (collectively, the "Series B Redemption Price"). Each outstanding share of Series C Preferred Stock will be redeemed for (i) one share of New Preferred Stock, (ii) 1.25 shares of Common Stock, and (ii) a 1.5 warrants to purchase the same number of shares of Common Stock at a purchase price of $5.00 per share of Common Stock (collectively, the "Series C Redemption Price," and together with the Series B Redemption Price, the "Redemption Price").

SEC Filing

The last trade for the IMPHO shares was 25 cents a few days ago. However, on November 15th, these shares will be converted to common worth 1.25 x the market price. Yesterday’s afterhours session sent the common to $0.42 per share, meaning the converted value is $0.52. Additionally, the shareholder will receive 1.5 warrants with a strike of $5 and a 10 cent preferred D, which is expected to be redeemed for cash. This means IMPHO is trading at a steep discount to market value, which I’d estimate to be about $0.82 per share.

The last trade for the IMPHP was $4.25. These shares will be exchanged for 13.33 common shares worth $5.60 as of yesterday evening. These shares will also receive $3 per share worth of Preferred D. So, they are also trading at a steep discount. Market value is about $8.60 on the IMPHP.

You won’t likely be able to buy these shares, as the float is significantly reduced. This message is for the current stockholders that seem to be dumping the shares without understanding what they are selling.