Apr. 21, 2011 (Marketwire) --
QUINCY, IL -- (Marketwire) -- 04/21/11 -- Mercantile Bancorp, Inc. (NYSE Amex: MBR) (the "Company") today announced it has merged its majority-owned subsidiary, Mid-America Bancorp, Inc., into the Company. Prior to the merger, Mid-America was the sole shareholder of Heartland Bank, headquartered in Leawood, Kansas.
As of March 31, 2011, Mercantile owned 55.5% of Mid-America and held subordinated debentures issued by Mid-America totaling $11.9 million. The debentures were convertible at the Company's option into common stock of Mid-America. On April 4, 2011, the Company exercised its right to convert the debentures into additional shares, thereby increasing its equity ownership of Mid-America to 91.5% and legally allowing the Company to execute the merger and subsequent dissolution of Mid-America. The Company will pay a total of $5,000 (approximately $.073 per share) for the surrender and cancellation of all shares of Mid-America stock not owned by the Company, on a pro-rata basis to the holders of such shares. On April 5, 2011, the Company completed the merger, Mid-America was dissolved, and Heartland Bank became a wholly-owned subsidiary of the Company.
Mercantile also announced that its audited consolidated financial statements for the year ended December 31, 2010, included in its Annual Report on Form 10-K which was filed with the Securities and Exchange Commission on April 15, 2011, contained a report from its independent registered public accounting firm that expressed an unqualified opinion but included a going concern disclosure. This announcement is made in accordance with NYSE Amex Company Guide Section 610(b), which requires separate disclosure of receipt of an audit opinion containing a going concern disclosure. This announcement does not represent any change or amendment to Mercantile Bancorp's consolidated financial statements or to its Annual Report on Form 10-K for the year ended December 31, 2010.
Ted T. Awerkamp, President and CEO, said the Company continues to actively pursue capital-raising strategies with its financial and legal advisors.
Investor Relations Update
In addition to notification of shareholder materials, shareholders and those who wish to closely follow Company news may now enroll to receive email notice of news and updates at the time of release. Register at the Company's website or directly at the following address: http://www.mercbanx.com/shareholders/enroll.php.
About Mercantile Bancorp
Mercantile Bancorp, Inc.