AAMC Issues Preferred Stock to USVI Executives; CEO Preferred Stock Dividend to Include One Share of Common Stock for Every Three Shares Repurchased

Rhea-AI Summary

Altisource Asset Management Corporation (AAMC) has issued preferred stock to CEO Jason Kopcak and CFO Stephen R. Krallman as part of its Preferred Stock Plan initiated in 2016. This plan aims to align employee interests with company success and enhance shareholder value. The preferred stock dividends will include common shares based on the number of common shares repurchased quarterly. This approach reflects the company’s strategy to return capital to shareholders while increasing executive ownership.

Positive

• Issuance of preferred stock aligns executive interests with shareholder value.
• The plan promotes retention of key personnel and potential future growth.
• Executive ownership increase may boost investor confidence.

Negative

• None.

CHRISTIANSTED, U.S. Virgin Islands--(BUSINESS WIRE)-- Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE: AAMC) announced that it has issued preferred stock to both Jason Kopcak, Chief Executive Officer of the Company, and Stephen R. Krallman, Chief Financial Officer of the Company.

“The Company originally adopted the Preferred Stock Plan in 2016 to incentivize employees to become employed, align their economic interest with the Company’s success and remain employees of the Company in the U.S. Virgin Islands,” said Chairman of the Board, John de Jongh, Jr. “We are pleased to offer this benefit to Jason and Steve and believe this provides an efficient way to return capital to our shareholders and increase Jason’s ownership in the Company.”

Mr. Kopcak and Mr. Krallman will have the right to a preferred stock dividend when and if declared by the Company’s Board of Directors (the “Board”). The Board intends that Mr. Kopcak’s preferred stock dividend will include one share of common stock for every three shares of common stock the Company repurchases during the prior quarter.

About AAMC

AAMC is a private credit provider that originates alternative assets to provide liquidity and capital to under-served markets. We also continue to assess opportunities that could potentially be of long-term benefit to shareholders. Additional information is available at www.altisourceamc.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, anticipations, and assumptions. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “target,” “seek,” “believe” and other expressions or words of similar meaning. We caution that forward-looking statements are qualified by the existence of certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements.

The statements made in this press release are current as of the date of this press release only. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230109005655/en/

Investor Relations

T: +1-704-275-9113

E: IR@AltisourceAMC.com

Source: Altisource Asset Management Corporation

FAQ

What is the purpose of AAMC's preferred stock issuance?

The preferred stock issuance aims to align employee interests with company success and return capital to shareholders.

What benefits will the executives receive from the preferred stock?

Executives will receive preferred stock dividends, which may include common shares based on the number of shares repurchased.

How does the preferred stock plan benefit AAMC shareholders?

The plan enhances shareholder value by aligning executive incentives with company performance and encouraging capital returns.