Company sells shares at $0.40 apiece to investors including director
By Devika Patel
Knoxville, Tenn., Oct. 31 - OptimumBank Holdings, Inc. completed an $8.26 million private placement of stock on Oct. 27, according to an 8-K filed Monday with the Securities and Exchange Commission. It will raise an additional $2.7 million at the same price with a company director in a deal arranged on Oct. 25 for a total of $10.96 million.
The company sold 20,639,250 common shares at $0.40 per share and will sell an additional 6.75 million shares at the same price to company director Moishe Gubin. The price per share reflects an 18.37% discount to the Oct. 26 closing share price of $0.49.
Gubin has already bought 1.8 million shares in addition to the 6.75 million shares he will buy in the second tranche, for a total of 8.55 million shares.
Settlement of Gubin's second tranche is expected by Feb. 28.
The company intends to contribute a substantial amount of the proceeds into its subsidiary, OptimumBank, to improve its capital ratios.
Based in Fort Lauderdale, Fla., OptimumBank Holdings is the bank holding company for OptimumBank.
| Issuer: | OptimumBank Holdings, Inc.
|
| Issue: | Common stock
|
| Amount: | $10,955,700
|
| Shares: | 27,389,250
|
| Price: | $0.40
|
| Warrants: | No
|
| Investor: | Moishe Gubin (for $2.7 million)
|
| Settlement date: | Oct. 27 (for $8,255,700), Feb. 28 (for $2.7 million)
|
| Stock symbol: | Nasdaq: OPHC
|
| Stock price: | $0.49 at close Oct. 27
|
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