Freedom Financial Hldgs. Inc. (FDVA)

[Enterprising Investor]

Freedom Bank’s Private Placement: Accretive to Tangible Book Value (1/04/16)

FAIRFAX, Va.--(BUSINESS WIRE)--The Freedom Bank of Virginia (OTCQX: FDVA) (the “Bank”) previously announced on December 29, 2015 that it entered into definitive agreements directly with institutional investors for the purchase of an aggregate of $16.0 million of its common stock and closed on $10.0 million on that date. The transaction was accretive to the Bank’s tangible book value, and the price paid per share is approximately 110% of the tangible book value per share as of September 30, 2015.

Four institutional investors were selected by the Bank to participate in the private placement. On December 29, 2015, the Bank offered and sold a total of 1,176,471 shares of its common stock at a price of $8.50 per share, resulting in proceeds to the Bank of $10.0 million. No warrants were offered in connection with the private placement.

Funds affiliated with Patriot Financial Partners GP II, LLC, based in Philadelphia, Pennsylvania, agreed to purchase $10.0 million of the Bank’s common stock. Patriot Financial Partners invested the initial $4.0 million on December 29, 2015, with the remaining $6.0 million expected to be invested during the first quarter of 2016. The December 29, 2015 closing also included $2.0 million invested by funds affiliated with The Banc Funds Company, L.L.C., based in Chicago, Illinois; $2.0 million invested by a fund affiliated with Commerce Street Holdings, LLC, based in Dallas, Texas, and Keefe Ventures, LLC, based in Morristown, New Jersey; and $2.0 million invested by a fund affiliated with Emerald Advisers, Inc., based in Lancaster, Pennsylvania. All are sophisticated institutional investors with investments in community banks throughout the country.

Tangible book value per share was $7.67 as of September 30, 2015.

The shares are exempt from registration with the Securities and Exchange Commission pursuant to Section 3(a)(2) of the Securities Act of 1933, as amended. The shares do not bear a restrictive legend. The Bank’s common stock is traded on the OTCQX U.S. Premier marketplace under the symbol “FDVA.”

Nelson Mullins Riley & Scarborough LLP served as counsel to the Bank. Silver, Freedman, Taff & Tiernan LLP served as counsel to Patriot Financial Partners.

Freedom Bank is a community bank with locations in Fairfax, Vienna, and Reston, Virginia. For information about Freedom Bank’s deposit and loan services, visit the Bank’s website at www.freedombankva.com.

http://www.businesswire.com/news/home/20160104006031/en/Freedom-Bank%E2%80%99s-Private-Placement-Accretive-Tangible-Book