Join        Login             Stock Quote

Jacksonville Bancorp (JAXB) Closes $50M Capital Raise

 December 31, 2012 12:13 PM

(By Balaseshan) Jacksonville Bancorp Inc. (NASDAQ: JAXB) announced the closing of a $50 million capital raise led by CapGen Capital Group IV LP under a definitive amended and restated stock purchase agreement.

The agreement provides for the issuance of 50,000 shares of JAXB Series A Mandatorily Convertible, Noncumulative, Nonvoting, Perpetual Preferred Stock to accredited investors at a purchase price of $1,000 per share.

The $50 million capital raise includes the $5 million investment by CapGen previously announced by JAXB in September, and also includes investments by various JAXB directors and officers.

[Related -Merger Arbitrage Mondays – June 28, 2010]

Sandler O'Neill + Partners, L.P. acted as sole placement agent for the stock purchase transaction. The net proceeds of the offering are expected to be used primarily to support the capital of the Bank.

Each share of Series A Preferred Stock is expected to mandatorily convert into about 2,000 shares of JAXB's voting common stock and/or a new class of nonvoting common stock at an initial conversion price of $0.50 per share, for a total issuance of about 100 million new shares of common stock upon conversion of the outstanding Series A Preferred Stock.

JAXB's shareholders will also be asked to approve an increase in the authorized shares of JAXB voting common stock and the authorization of a new class of nonvoting common stock, in order to effect the conversion of the Series A Preferred Stock. JAXB expects to hold a special meeting of shareholders in early 2013.

[Related -Merger Arbitrage Mondays – June 21, 2010]

Immediately prior to the closing of the capital raise, the Bank sold about $25.1 million of classified assets, other loans and other real estate owned for about $11.7 million. The asset purchaser was also an investor in the capital raise. Sandler O'Neill Mortgage Finance L.P., an affiliate of Sandler O'Neill + Partners, L.P., acted as exclusive financial advisor to JAXB in connection with the asset sale.

JAXB is trading down 2.28% at $0.86 on Monday. The stock has been trading between $0.75 and $3.65 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageThe S&P 500’s Worrisome Downturn In Drawdown

Last Friday I reviewed some of the bearish signals that were casting dark shadows across the US stock read on...

article imageADP: Private-Sector Employment Rises A Solid 200k In September

The pace of growth for private-sector employment picked up in September, according to this morning’s ADP read on...

article imageTreasury Market’s Inflation Expectations Tumble

The odds for a Fed rate hike are falling like a stone, or so it appears based on the implied inflation read on...

article imageEmerging Market Stocks: Last Week’s Red-Ink Leader

Value investors on the lookout for bargains have recently been eyeing up the battered corner of emerging read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Merger Arbitrage Mondays – June 14, 2010
More Articles on: Finance

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.