Shareholders receive one subscription right for each common share held
By Devika Patel
Knoxville, Tenn., Sept. 4 - Royal Bancshares of Pennsylvania, Inc. will conduct a rights offering to raise up to $6 million, according to a Form S-1 filed Wednesday with the Securities and Exchange Commission.
The company will offer rights for up to 5 million common shares. Investors will receive one subscription right for every common share held as of 5 p.m. ET on the record date.
Each right will entitle the holder to purchase one class A common share at $1.20 per share, a 20% discount to the closing share price of $1.50 on Sept. 3.
Proceeds will be used to purchase TARP shares and increase liquidity and capital.
The company also plans a $4.59 million private placement of stock in which it will sell 3,333,333 shares at $1.20 apiece to Emerald Advisers, Inc. and 488,333 shares at the same price to insiders.
The bank holding company is based in Narberth, Pa.
| Issuer: | Royal Bancshares of Pennsylvania, Inc.
|
| Issue: | Common stock
|
| Amount: | $6 million
|
| Shares: | 5 million
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| Price: | $1.20
|
| Warrants: | No
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| Pricing date: | Sept. 4
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| Stock symbol: | Nasdaq: RBPAA
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| Stock price: | $1.50 at close Sept. 3
|
| Market capitalization: | $19.48 million
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