Bank sells 5 million shares at $6.00 apiece via Keefe, Bruette & Woods
By Toni Weeks
San Luis Obispo, Calif., June 23 – Open Bank said it raised $30 million in a best-efforts private placement of common shares via agent Keefe, Bruyette & Woods.
The bank sold 5 million shares at $6.00 per share to institutional investors and other accredited investors. The per-share price is a 29.41% discount to the closing share price of $8.50 on June 20.
“The success of this capital raise is a reflection of the strength of our franchise, employees and business plan as a leading Korean-American community business bank in the Great Los Angeles Area,” Open Bank president and chief executive officer Min Kim said in a press release. “The additional capital will enhance our strategic capabilities to grow our franchise and support the needs of our customers.”
Proceeds will be used for general corporate purposes, including growth of the bank.
As a result of the capital injection, Open Bank’s tangible common equity to assets increased to 14.8% from 8.5% as of March 31, the release noted.
The community bank is based in Los Angeles.
| Issuer: | Open Bank
|
| Issue: | Common stock
|
| Amount: | $30 million
|
| Shares: | 5 million
|
| Price: | $6.00
|
| Warrants: | No
|
| Agent: | Keefe, Bruyette & Woods
|
| Settlement date: | June 23
|
| Stock symbol: | OTCBB: OPBK
|
| Stock price: | $8.50 at close June 20
|
| Market capitalization: | $18.7 million
|
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