Board seeks shareholder vote to OK other half at same 10% discount
By Susanna Moon
Chicago, May 9 - Yadkin Valley Financial Corp. completed a $6.4 million private placement to a "small number of accredited investors" at the close of business May 6, according to a company press release. All members of the company's board of directors participated in the deal.
The company said that directors, executives and employees invested about half of the funds raised at a price of $2.25 per share, which was the closing share price on April 29.
All other investors paid $1.98 per share, representing a 10% discount for the 10-day weighted average price ended April 29.
Yadkin said its board of directors has recommended to its shareholders approving a proposal to authorize the discounted price for directors, executives and employees. Shareholders will vote on the proposal at the company's annual meeting on June 23.
The financing "will further augment Yadkin Valley's capital position. The company will continue to evaluate additional capital opportunities as market conditions improve," the release said.
Yadkin Valley Financial is a Elkin, N.C.-based bank holding company for Yadkin Valley Bank and Trust Co., a chartered commercial bank.
| Issuer: | Yadkin Valley Financial Corp.
|
| Issue: | Shares
|
| Amount: | $6.4 million
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| Price: | $2.25 for half; $1.98 for other half
|
| Warrants: | No
|
| Settlement date: | May 6
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| Stock symbol: | Nasdaq: YAVY
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| Stock price: | $2.42 at close May 6
|
| Market capitalization: | $39.10 million
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