Republic First Bancorp founder Harry Madonna has relinquished the chairman position in favor of Andrew Cohen, a move unlikely to satisfy the activist alliance pushing for the removal of both directors.
Republic First announced the election of Andrew Cohen as its new chairman on Tuesday, adding that Madonna will continue to serve on its board. Cohen, a Republic First board member since 2017, takes the helm as the community lender is preparing for a proxy contest against a 10% activist group led by New Jersey power broker George Norcross.
The new chairman is the chief investment officer of Cohen Private Ventures, a firm that earlier this year agreed to make a $30-million equity investment in Republic First. The lender recently paused the capital raise, irking Norcross, who labeled the decision nonsensical since the Cohen equity deal was pegged at $2.25 per share, versus $1.02 when Republic First said it would shelve the fundraising in mid-May.
Norcross is hoping to get ally and former TD Bank boss Gregory Braca and potentially other directors elected to the lender’s board in a bid to replace four legacy director members, including Madonna and Cohen. In a letter last week, Norcross cited the bank stock’s dive to record lows in May as a reason strong enough to revamp the board.
Republic First believes Norcross is overreaching and claims it offered to name Braca to its board in a settlement framework that also entailed ”seven-figure expense reimbursement” and allowed the dissidents to nominate an independent director.
Republic First shares dropped more than 10% Tuesday.