Read Larry Connors' blog – Short Term Trading Strategies
The private placement was issued through two newly-created classes of preferred stock. The issuance of preferred stock announced today includes $8.3 million of the previously announced Series A preferred stock that has been held in escrow since March 5, 2009, along with additional investor funds of $5.1 million sold in Series B preferred stock. As a result of shareholder approval which was obtained at our 2009 Annual Meeting of Shareholders held on June 23, 2009, both classes of the preferred stock will be immediately converted into shares of the Company's common stock at a conversion price of $3.00 per share. Also, upon conversion, the investors will receive warrants to purchase additional shares of common stock equal to 30% of the aggregate value of their investment. The warrants will be exercisable for a term of seven years at an exercise price of $3.75 per share. Sandler O'Neill & Partners, L.P. served as placement agent and financial advisor for the Company and Troutman Sanders LLP provided legal advice to the Company in this transaction.
Based on June 30, 2009 figures, this additional capital will increase the Company's Total Risk Based Capital Ratio from 10.8% to 12.2%, the Company's Tier 1 Risk Based Capital Ratio from 9.8% to 11.0%, and the Company's Tier 1 Leverage Ratio from 7.1% to 8.1%. The Company's outstanding number of common shares will increase from 9,324,407 to 13,795,051 and our tangible book value will decrease from $8.84 per share to $6.95 per share.
About PAB
The Company is a $1.28 billion bank holding company headquartered in Valdosta, Georgia, and its sole operating subsidiary is The Park Avenue Bank. Founded in 1956, the Bank operates through 18 branch offices and two loan production offices in 13 counties in Georgia and Florida. Additional information on the Bank's locations and the products and services offered by the Bank is available on the Internet at www.parkavebank.com. The Company's common stock is listed on the NASDAQ Global Select Market under the symbol PABK. More information on the Company is available on the Internet at www.pabbankshares.com.
Cautionary Note to Investors Regarding Forward-Looking Statements
Certain matters set forth in this news release are "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements regarding our anticipated capital ratios and our ability to address the challenges facing the Company, and are based upon management's beliefs as well as assumptions made based on data currently available to management. When words like "anticipate", "believe", "intend", "plan", "expect", "estimate", "could", "should", "will" and similar expressions are used, you should consider them as identifying forward-looking statements. These forward-looking statements are not guarantees of future performance, and a variety of factors could cause the Company's actual results to differ materially from the anticipated or expected results expressed in these forward-looking statements including our ability to maintain our anticipated capital ratios and our ability to address the challenges facing the Company, and those other risks and factors discussed in the Company's Annual Report on Form 10-K and Quarterly Reports on Forms 10-Q as filed with the Securities and Exchange Commission.. The Company undertakes no obligation to revise these statements following the date of this press release.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: PAB Bankshares Inc.
CONTACT: PAB Bankshares Inc. Nicole S. Stokes, Senior Vice-President & Chief Financial Officer (229) 241-2775, ext. 1718 nicoles@parkavebank.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
