Impac Mortgage Holdings (IMH)

[JoeBlack]

Impac Mortgage Holdings, Inc. Announces Possible Preferred Stock Exchange Offer and the Granting of a Motion to Dismiss the 2006 Class Action Lawsuit
Wednesday May 28, 5:28 pm ET


IRVINE, Calif., May 28 /PRNewswire-FirstCall/ -- Impac Mortgage Holdings, Inc. (NYSE: IMH - News), or the "Company", a Maryland corporation being taxed as a real estate investment trust ("REIT"), is considering making an offer to the holders of its Series B and Series C Preferred Stock, to exchange those shares for common stock of the Company. The Company has included within its preliminary proxy statement a request for common stockholders to approve the issuance of common stock in excess of 20% of the outstanding shares in connection with the possibility of such an exchange. If approved, and if completed, it would reduce the Company's continuing obligation to pay or accrue quarterly preferred dividends, thereby allowing the Company to use or preserve the cash for other purposes. Further, if completed on favorable terms it may have the effect of increasing common stockholders' equity.