Bimini Capital Management Announces Agreement to Acquire Tom Johnson Investment Management
MWN-AI** Summary
Bimini Capital Management, Inc. has announced a strategic agreement to acquire 80% of Tom Johnson Investment Management, LLC (TJIM), a registered investment adviser, for a purchase price set at 2.5 times TJIM's revenue for the fiscal year ending December 31, 2025. The deal will close at the end of Q1 2026 and will primarily be funded in cash. If the purchase price exceeds $12 million, the excess will be paid in three annual installments. The remaining 20% interest in TJIM can be required for purchase under specific conditions, potentially enhancing Bimini’s overall asset management capabilities.
This acquisition aims to integrate TJIM’s approximated $1.6 billion in assets under management, spanning equity and fixed income markets, into Bimini’s operations. Bimini's Chairman and CEO, Robert E. Cauley, highlights the acquisition's potential for growth, emphasizing benefits like enhanced management expertise, access to existing banking relationships, and increased industry recognition tied to Bimini’s public listings.
Richard H. Parry, President and CIO of TJIM, endorsed the initiative, noting it enhances staff retention and incentivizes continued quality service for clients. The transaction structure also allows key members of TJIM’s team the opportunity to become equity owners, strengthening their allegiance to the firm's future.
Bimini Capital Management specializes in residential mortgage-related securities, utilizing leverage and various hedging strategies, and operates as the external manager for Orchid Island Capital, Inc., a public real estate investment trust. This acquisition represents a significant step in transitioning Bimini into a dedicated asset management firm with diversified asset management strategies while maintaining its existing operational teams and client-focused management.
MWN-AI** Analysis
Bimini Capital Management's recent announcement regarding the acquisition of an 80% equity interest in Tom Johnson Investment Management (TJIM) signifies a strategic move aimed at amplifying its asset management capabilities. This acquisition is expected to leverage Bimini's infrastructure and capital markets expertise, potentially positioning the firm as a more formidable player in the asset management landscape.
With TJIM managing approximately $1.6 billion in assets across diverse equity and fixed income markets, Bimini stands to gain significant scale and investment diversification. The valuation structure—2.5 times TJIM's 2025 revenue—emphasizes a growth-oriented outlook, suggesting that Bimini is banking on TJIM's operational success post-acquisition.
The transaction not only facilitates immediate financial strengthening through asset growth but also strategically retains TJIM’s management team and staff. Retaining existing employees while incentivizing them to acquire equity positions aligns personal interests with company performance, which is essential for sustaining service continuity in a competitive market.
Investors should view this acquisition as a positive signal of Bimini's commitment to evolving into a pure asset management entity. This transition is bolstered by Bimini’s existing operations as the external manager for Orchid Island Capital, enhancing brand recognition and potentially driving new capital inflows.
Moreover, the condition that the principal seller enters into a three-year employment agreement helps ensure stability during the integration phase, mitigating risks associated with major transitions.
From a market perspective, Bimini's shares (OTCQX:BMNM) could experience upward pressure as investors anticipate enhanced revenue streams post-acquisition along with improved operational efficiencies. However, prospective investors should closely monitor the completion of due diligence and regulatory approvals, as these factors could impact the timeliness and success of the transaction. Overall, the acquisition appears strategically sound, positioning Bimini for significant growth in the evolving asset management space.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
VERO BEACH, Fla., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Bimini Capital Management, Inc. (OTCQX:BMNM) ("Bimini” or the “Company”) today announced that Bimini Advisors Holdings, LLC, a wholly owned subsidiary of Bimini, has entered into an agreement to purchase eighty percent (80%) of the fully diluted equity interests of Tom Johnson Investment Management, LLC (“TJIM”), a privately held registered investment adviser. The transaction is expected to close at the end of the first quarter of 2026.
The purchase price to be paid in the transaction will equal 2.5 times 80% of TJIM’s revenue for the fiscal year ended December 31, 2025 and will be paid in cash at the closing. To the extent that the purchase price exceeds $12,000,000, the excess will be paid in three equal annual installments, or, if the excess is less than $1,000,000, on or before the first anniversary of the Closing. In addition, subject to certain conditions, the holder of the remaining 20% of TJIM may require Bimini to purchase its interests upon the later to occur of (a) the third anniversary of the Closing and (b) the principal seller ceasing to be an employee of TJIM, at a purchase price to be determined using the formula used to determine the initial purchase price paid at closing; alternatively, Bimini has the option to acquire such remaining 20% interest following the third anniversary of the closing, at a purchase price to be determined using the same formula.
Completion of the transaction is conditioned on the principal seller entering into a new three-year employment agreement with TJIM and is also subject to customary conditions, including the completion of financial, legal, and regulatory due diligence, and the receipt of all necessary regulatory, contractual and other consents, including from TJIM’s existing clients.
Commenting on transaction, Robert E. Cauley, Chairman and Chief Executive Officer, said, “We are excited to announce this transaction and believe it will enhance both Bimini and TJIM. TJIM currently has approximately $1.6 billion of assets under management across both the equity and fixed income markets. Their management agreements are diverse, covering individual accounts, sub-advisory agreements and wrap programs. Further, this transaction will provide TJIM with: (i) access to Bimini’s experienced public company management, governance, and infrastructure; (ii) Bimini’s capital markets expertise and access (including Bimini’s banking relationships with major banks across Wall Street); and (iii) potential to raise assets under management in public markets. TJIM will also receive increased name recognition from its affiliation with Bimini, the external manager of Orchid Island Capital, Inc., a New York Stock Exchange-listed public real estate investment trust ("Orchid Island"). The existing owners of TJIM will be retaining an ownership interest in TJIM and we intend to retain its current staff and investment management team following the closing of the transaction. We expect that certain members of TJIM’s current staff will be offered the opportunity to become equity owners in TJIM following the closing of the transaction, which we believe will incentivize them to remain with the company and be even more aligned with TJIM’s objectives. Further, the management of the respective assets of TJIM and Bimini will remain under their current management teams, and we do not anticipate comingling of the asset management responsibilities. The transaction is intended to transition Bimini into a pure asset management firm with a more diverse mix of assets under its respective management teams.”
Richard H. Parry, President and Chief Investment Officer of TJIM added, “This strategic step will facilitate staff retention and provide our staff with ongoing incentives for both growth and sustaining the high level of services to our clients over the long term. I personally look forward to working with Bob and Bimini in the years to come to address this ever-changing investment service arena.”
Westmere Management LLC acted as exclusive financial advisor to Bimini in connection with this transaction.
About Bimini Capital Management, Inc.
Bimini Capital Management, Inc. is an asset manager specializing in residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae) while employing leverage and various hedging strategies.
Through our wholly owned subsidiary, Bimini Advisors, LLC ("Bimini Advisors"), we serve as the external manager of Orchid Island. Bimini Capital Management, Inc. and its subsidiaries are headquartered in Vero Beach, Florida.
CONTACT:Bimini Capital Management, Inc.Robert E. Cauley, 772-231-1400Chairman and Chief Executive Officerhttps://ir.biminicapital.com
FAQ**
How does Bimini Capital Management Inc - Class A BMNM plan to leverage TJIM's existing assets under management to enhance its portfolio and overall market position following the acquisition?
What specific regulatory approvals must Bimini Capital Management Inc - Class A BMNM secure before finalizing the purchase of 80% of TJIM, and what is the timeline for obtaining these consents?
Can you elaborate on the expected impact of this transaction on Bimini Capital Management Inc - Class A BMNM's operational structure and its transition into a pure asset management firm?
What incentives will be put in place for TJIM's existing management team and staff as part of the acquisition by Bimini Capital Management Inc - Class A BMNM to ensure long-term client satisfaction and service continuity?
**MWN-AI FAQ is based on asking OpenAI questions about Bimini Capital Management Inc - Class A (OTC: BMNM).
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