Porter Bancorp, Inc. Raises Additional $4.25 Million In Stock Offering
Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, announced today that it raised an additional $4,255,000 in a private placement to an accredited institutional investor. The private placement included the sale of 370,000 shares of convertible preferred stock at a price of $11.50 per share. The proceeds of the offering will be used for working capital, general corporate purposes and for augmenting the balance sheet.
“We are pleased to complete the follow-on investment of stock by a new institutional investor in addition to the $27.0 million raised in a similar offering completed on June 30, 2010,” stated Maria L. Bouvette, President and CEO of Porter Bancorp, Inc. “The additional proceeds further strengthens our capital base and will provide a solid base to support our continued growth.”
Private Placement Terms
The private placement totaled $4,255,000 and included the sale of 370,000 shares of Series B Mandatory Convertible Preferred Stock at $11.50 per share. The Preferred Stock is convertible into Common Stock on a share-for-share basis. The Company also issued a warrant that is convertible into 185,000 shares of Non-Voting Common Stock at an exercise price of $11.50 per share.
The Series B Preferred Stock issued to the new investor has the same terms as the Series B Preferred Stock issued in the June 30 private placement. The preferred shares will convert into common stock only when approved by Porter shareholders, in accordance with NASDAQ Rule 5635, which requires shareholder approval when the total number of common shares sold in a private placement would exceed 20% of the Company’s outstanding common shares. J. Chester Porter, Chairman of the Board of Porter Bancorp, and Maria Bouvette, President and CEO of Porter Bancorp, the Company’s principal shareholders, have agreed to vote in favor of the conversion. The Company expects to submit the proposal for shareholder approval during the third quarter of 2010.Select the service that is right for you!
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