Pacific Mercantile Bancorp Completes $11.2 Million Equity Financing
Pacific Mercantile Bancorp (Nasdaq: PMBC) announced today that, on August 26, 2011, it completed a private placement in which it sold 112,000 shares of a newly created Series B Convertible 8.4% Preferred Stock, at a price of $100 per Share in cash, generating gross proceeds to the Company of $11.2 million.
The Company will be contributing the net proceeds from the sale of the Series B Shares to its wholly-owned banking subsidiary, Pacific Mercantile Bank, to increase the ratio of the Bank's adjusted tangible shareholders' equity to its tangible assets above 9%, thereby enabling the Bank to satisfy the capital requirement under a previously reported regulatory order issued in 2010 by the California Department of Financial Institutions.
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