Deal sells common stock and warrants to increase bank's equity capital
By Devika Patel
Knoxville, Tenn., July 16 - New Peoples Bankshares, Inc. will raise between $10 million and $25 million in a rights offering, according to a prospectus filed Monday with the Securities and Exchange Commission. Any shares not sold in the rights offering will be offering in a public sale.
The company will sell common shares at $1.50 apiece on a best-efforts basis. The price per share is a 42.86% premium to the July 13 closing share price of $1.05.
The investors also will receive one warrant for every five shares purchased. The warrants are each exercisable at $1.75 for five years. The strike price reflects a 66.67% premium to the July 13 closing share price.
Proceeds will be used to increase the bank's equity capital as necessary, to serve as a buffer for any possible degradation in the bank's loan or asset portfolios and for general corporate uses.
The holding company for New Peoples Bank is based in Honaker, Va.
| Issuer: | New Peoples Bankshares, Inc.
|
| Issue: | Common stock
|
| Amount: | $10 million (minimum), $25 million (maximum)
|
| Price: | $1.50
|
| Warrants: | One warrant for every five shares purchased
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.75
|
| Pricing date: | July 16
|
| Stock symbol: | OTCBB: NWPP
|
| Stock price: | $1.05 at close July 13
|
| Market capitalization: | $10.51 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
