Company offers subscription rights to buy three common shares at $1.00
By Devika Patel
Knoxville, Tenn., March 26 - Four Oaks Fincorp, Inc. said it will raise about $26.6 million through a rights offering.
The company will offer one subscription right for each common share held. Each subscription right will entitle its holder to purchase three common shares at the subscription price of $1.00, a 44.44% discount to the closing share price of $1.80 on March 25.
Four Oaks will also sell the lesser of 10 million shares or any shares not sold in the rights offering to Kenneth R. Lehman. Lehman also has the right of refusal to purchase an additional 6 million shares, with an initial sale of 875,000 shares.
The bank holding company is based in Four Oaks, N.C.
| Issuer: | Four Oaks Fincorp, Inc.
|
| Issue: | Common stock
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| Amount: | $26.6 million (approximate)
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| Shares: | Three shares for each common share held
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| Price: | $1.00
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| Warrants: | No
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| Investor: | Kenneth R. Lehman (for the lesser of 10 million shares or any shares not sold in the rights offering)
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| Pricing date: | March 26
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| Stock symbol: | OTCBB: FOFN
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| Stock price: | $1.80 at close March 25
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| Market capitalization: | $15.92 million
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