Published on 11/21/2008 in the Prospect News PIPE Daily.
New Issue: Marco Community arranges $5.63 million sale of preferred units
By Devika Patel
Knoxville, Tenn., Nov. 21 - Marco Community Bancorp, Inc. began a $5.63 million private placement of its series C preferred stock on Nov. 20, according to an 8-K filed Friday with the Securities and Exchange Commission. It has already raised $1.01 million.
The company is offering 750 units priced at $7,500 apiece. Each unit consists of one series C preferred and one warrant for 2,000 common shares.
Each preferred is convertible into 2,000 common shares. The preferred stock has no voting rights, but does have a liquidation preference value of $7,500 per share. Semiannual cash dividends of $157.50 per share are payable in arrears.
The warrants are exercisable until Dec. 31, 2011. Until the end of 2009, the exercise price is $3.75 per share; in 2010, the exercise price will be $4.50 per share and in 2011 (and in 2012, if the warrant term is extended), the exercise price will be $5.25 per share.
Based in Marco Island, Fla., Marco Community Bancorp is a holding company for Marco Community Bank and for MCB Commercial Lending Corp.
| Issuer: | Marco Community Bancorp, Inc.
|
| Issue: | Units of one series C preferred share and one warrant for 2,000 shares
|
| Amount: | $5,625,000
|
| Units: | 750
|
| Price: | $7,500
|
| Warrants: | One warrant for 2,000 shares per unit
|
| Warrant expiration: | Dec. 31, 2011
|
| Warrant strike price: | $3.75 (until Dec. 31, 2009), $4.50 (in 2010), $5.25 (2011 until expiration)
|
| Pricing date: | Nov. 20
|
| Settlement date: | Nov. 20 (for $1,005,000)
|
| Stock symbol: | OTCBB: MCBN
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| Stock price: | $4.25 at close Nov. 20
|
|
|
| Preferreds
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| Dividends: | $157.50 (per preferred, paid semiannually)
|
| Conversion ratio: | Into 2,000 shares (per preferred)
|
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