This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Central Federal Corporation Announces Successful Completion Of $12 Million Preferred Stock Private Placement

WORTHINGTON, Ohio, July 21, 2014 /PRNewswire/ -- Central Federal Corporation (NASDAQ: CFBK) (the "Company"), the parent holding company of CFBank, has announced the completion of a private placement of an aggregate of 480,000 shares of 6.25% Non-Cumulative Convertible Perpetual Preferred Stock, Series B, of the Company with a liquidation preference of $25.00 per share ("Series B Preferred Stock").  The Company sold 270,000 shares of Series B Preferred Stock on May 12, 2014, and an additional 210,000 shares of Series B Preferred Stock on July 15, 2014, for an offering price of $25.00 per share, which resulted in gross proceeds to the Company of $12 million.  After payment of placement fees and other expenses, the Company's net proceeds from the sale of the 480,000 shares of Series B Preferred Stock in the private placement were approximately $11.4 million.

Timothy T. O'Dell, CEO, commented:  "We are very pleased to announce our successful completion of this private placement, which allows us to increase the capital levels of the Company and CFBank, as well as to fund our continued growth and expansion.  We are particularly appreciative of the support that we received from our existing common stockholders."    

Each share of Series B Preferred Stock sold by the Company in the private placement is convertible into approximately 14.29 shares of the Company's common stock based on a conversion price of $1.75 per share of common stock (subject to certain anti-dilution adjustments).  In addition, the Company issued Warrants to purchase an aggregate of 1,152,125 shares of common stock to the purchasers of the Series B Preferred Stock in the private placement. The Warrants are exercisable for a period of five years at a cash purchase price of $1.85 per share of common stock (subject to certain anti-dilution adjustments).  The conversion of the Series B Preferred Stock and the exercise of the Warrants are subject to the restriction that in no event may shares of the Series B Preferred Stock be converted into, or Warrants exercised for, more than 19.9% of the Company's total outstanding common stock or voting power unless and until the stockholders of the Company approve the issuance of the shares of common stock upon the conversion of the Series B Preferred Stock and exercise of the Warrants in accordance with the applicable rules of the NASDAQ Stock Market. 

The Series B Preferred Stock and Warrants sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or under the securities laws of any state, and may not be resold without registration or an exemption from registration under the Securities Act and applicable state securities laws. The Series B Preferred Stock and Warrants were sold solely to "accredited investors" as defined in Rule 501(a) as promulgated under the Securities Act. 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs