Florida Bank Group amends $5.11 million preferreds sold in placement

Conversion rights amended so that securities won't convert until July

By Devika Patel

Knoxville, Tenn., Dec. 14 - Florida Bank Group, Inc. negotiated an agreement with the investors who participated in a $5.11 million private placement of non-cumulative perpetual series C preferred stock on Dec. 8, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal settled on June 30.

The investors agreed not to convert any preferreds into common shares before July 1, unless the company completes a private placement of at least $50 million before that date. If the company closes a placement before that date, the holders agree to convert all of their preferreds at the same price as the common stock sold in the offering.

If the company does not raise $50 million by July 1, then the preferreds' conversion price and conversion rights will remain as they were before this agreement and may be converted at any time.

The private bank holding company is based in Tampa, Fla.

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