Brookfield Homes [NASDAQ: BHS] stockholders on March 24 voted on and filed with the secretary of state of Delaware, where the company is incorporated, to increase total company common stock shares from 65 million to 200 million for $0.01 par value per share.
On the same day, company CEO Ian Cockwell acquired 1 million shares through employee stock options.
Brookfield has also filed with the Securities and Exchange Commission a rights offering to common stockholders of up to 10 million shares of 8% convertible preferred stock, which was announced Dec. 23 but still pending approval, according to Linda Northwood, Brookfield spokesperson.
Through the offering, each whole right will entitle the holder to purchase one share of convertible preferred stock for $25. The company hopes to net $250 million from the offering, with the proceeds going to general corporate purposes, including repayment on the credit facility of an affiliate of its largest stockholder, Brookfield Asset Management, Inc.
During the company's year-end conference call, Cockwell stated that if stockholders did not buy into the rights offering to fully cover their stake, Brookfield Asset Management would do so: "Brookfield Asset Management indicates its intention to exercise in full its subscription rights, as well as any over-subscription rights to which it might be entitled."
Brookfield closed 2008 with $0 cash, down from $9 million in 2007, with $749 million in debt.