First Mariner arranges $36.38 million placement of stock, preferreds

Series A convertible preferreds, common shares sold to lone investor

By Devika Patel

Knoxville, Tenn., April 25 - First Mariner Bancorp arranged a $36.38 million private placement of common stock and series A convertible participating voting preferred stock on April 19, according to an 8-K filed Monday with the Securities and Exchange Commission. The investor is Priam Capital Fund I, LP.

The company will sell 11,370,690 shares at $0.50 apiece and 30,696 preferreds at $1,000.00 each.

Priam also will receive a warrant for 15,355,539 shares, which is exercisable at $0.50 for ten years.

The price per common share and warrant strike price both represent a 24.24% discount to the April 18 closing share price of $0.66.

First Mariner is the Baltimore-based holding company for First Mariner Bank.

Issuer:	First Mariner Bancorp
Issue:	Series A convertible participating voting preferred stock
Amount:	$36,381,345
Warrants:	For 15,355,539 shares
Warrant expiration:	Ten years
Warrant strike price:	$0.50
Investor:	Priam Capital Fund I, LP
Pricing date:	April 19
Stock symbol:	Nasdaq: FMAR
Stock price:	$0.69 at close April 19
Market capitalization:	$11.49 million
Common shares
Amount:	$5,685,345
Shares:	11,370,690
Price:	$0.50
Preferred shares
Amount:	$30,696,000
Shares:	30,696
Price:	$1,000.00
Conversion price:	$0.50

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