Company seeks to fund conversion of subsidiary into a community bank
By Devika Patel
Knoxville, Tenn., Jan. 31 - OptimumBank Holdings, Inc. said it plans a private placement of stock. The deal will raise between $10 million and $15 million.
The company will sell between 5 million and 7.5 million common shares at $2.00 per share. The price per share is a 43.5% discount to $3.54, the Jan. 28 closing share price.
The proceeds of the offering will be used for the new business strategy of the company's subsidiary, OptimumBank, and to increase OptimumBank's regulatory capital. The new business plan is intended to convert Optimum Bank from a wholesale banking model into a full-service community bank.
Based in Fort Lauderdale, Fla., OptimumBank Holdings is a bank holding company for OptimumBank.
| Issuer: | OptimumBank Holdings, Inc.
|
| Issue: | Common stock
|
| Amount: | $10 million (minimum), $15 million (maximum)
|
| Shares: | 5 million (minimum), 7.5 million (maximum)
|
| Price: | $2.00
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| Warrants: | No
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| Pricing date: | Jan. 31
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| Stock symbol: | Nasdaq: OPHC
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| Stock price: | $3.54 at close Jan. 28
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| Market capitalization: | $2.59 million
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