Pacific Commerce Bancorp fka PCBC

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Pacific Commerce Bank Announces $5 Million Capital Raise in Private Transaction

Company Release - 01/24/2011 06:00

LOS ANGELES--(BUSINESS WIRE)-- Pacific Commerce Bank (OTCBB:PFCI) reported a successful capital raise through a private placement of its common stock.

Capital Raise

The Bank entered into a stock purchase agreement with certain accredited investors, pursuant to a stock permit issued by the California Department of Financial Institutions on January 13, 2011. The Bank sold 1,000,000 shares of its common stock at a price of $5.00 per share (equivalent to approximately 83% of per share book value as of September 30, 2010), resulting in $5 million taken into capital. The capital raise is for general corporate purposes and to better position the bank to pursue certain strategic opportunities. The initial $5 million raise will result in a tangible equity ratio of approximately 12.9% (based on assets as of September 30, 2010).

“We are extremely pleased with the level of interest in this transaction by both outside investors and by our friends. Compared to a number of other community banks that have been forced to raise capital at extremely dilutive prices of 30% to 50% of book, our price of $5 per share reflects well on the direction of the bank and the investors’ confidence in our management,” commented Brian Kelley, President & CEO. “The new capital will allow us to continue the progress we have made in implementing our business plan and improving asset quality, and should better position the bank for future opportunities,” continued Mr. Kelley.

http://www.snl.com/IRWebLinkX/file.aspx?IID=4073179&FID=10634694


*This capital raising effort took place nearly 2 years ago. Investors paid $5 @ share. The PPS on 12/27/2012 closed at $2.05 which represents a significant discount to entry under the cap infusion investors price.