Deal sells stock to community at same price as $45 million placement
By Devika Patel
Knoxville, Tenn., April 18 – HCSB Financial Corp. priced a $2.34 million public sale of stock, according to a Form S-1 filed Monday with the Securities and Exchange Commission.
The company will sell 23,384,301 common shares at $0.10 per share. The price per share reflects a 37.5% discount to the April 15 closing share price of $0.16.
If the offering is oversubscribed, HCSB may allocate shares at its discretion.
Proceeds will be used for general corporate and operational purposes.
The deal is being conducted in connection with the recent $45 million private placement of common stock and convertible preferred stock that the company settled with Castle Creek Capital Partners VI, LP and other investors on April 11. HCSB noted in the filing that this public sale is an opportunity for shareholders, employees and others in the company’s community to invest in HCSB at the same offering price. The company stated in the filing that this is not a rights offering.
As previously reported, in the April 11 placement, which priced on March 2 and was conducted by agent Hovde Group, LLC, the company sold 359,468,443 common shares at $0.10, a 71.43% discount to the March 24 closing share price of $0.35. The investors in the placement also bought 905,315.57 series A convertible perpetual non-voting preferred stock at $10.00 per preferred.
The holding company for Horry County State Bank is based in Loris, S.C.
| Issuer: | HCSB Financial Corp.
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| Issue: | Common stock
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| Amount: | $2,338,430
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| Greenshoe: | Possibly
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| Shares: | 23,384,301
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| Price: | $0.10
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| Warrants: | No
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| Pricing date: | April 18
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| Stock symbol: | OTCBB: HCFB
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| Stock price: | $0.16 at close April 15
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| Market capitalization: | $615,410
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