Porter Bancorp, Inc. Raises Additional $4.25 Million in Stock Offering
Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, announced today that it raised an additional $4,255,000 in a private placement to an accredited institutional investor. The private placement included the sale of 370,000 shares of convertible preferred stock at a price of $11.50 per share. The proceeds of the offering will be used for working capital, general corporate purposes and for augmenting the balance sheet.
“We are pleased to complete the follow-on investment of stock by a new institutional investor in addition to the $27.0 million raised in a similar offering completed on June 30, 2010,” stated Maria L. Bouvette, President and CEO of Porter Bancorp, Inc. “The additional proceeds further strengthens our capital base and will provide a solid base to support our continued growth.”
The private placement totaled $4,255,000 and included the sale of 370,000 shares of Series B Mandatory Convertible Preferred Stock at $11.50 per share. The Preferred Stock is convertible into Common Stock on a share-for-share basis. The Company also issued a warrant that is convertible into 185,000 shares of Non-Voting Common Stock at an exercise price of $11.50 per share.
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