The Bancorp in Wilmington, Del., has raised $74 million by selling common stock and a new series of preferred stock.
The $4.4 billion-asset company said in a Monday press release that it sold $7.5 million in common stock to unnamed institutional and accredited investors at $4.50 per share. It also sold 40,000 shares of Series C non-voting perpetual preferred stock at $1,000 a share as part of a private placement.
The preferred stock will convert into common stock at a conversion price of $4.50 a share, pending shareholder and regulatory approval. When the private placement closes, two investors will be able to each appoint a representative to the company’s board.
The Bancorp also agreed to sell about 1 million shares of common stock to directors and executives at $4.50 a share.
Daniel Cohen, the company’s chairman, and a trust in his name will pay nearly $2 million for 444,000 shares. Chief Executive Damien Kozlowski will pay $225,000 for 50,000 shares, and John Chrystal, a director and former interim CEO, will pay around $1 million for 225,000 shares, according to a subscription agreement submitted as part of a regulatory filing.
The company said it plans to use the proceeds to make investments related to its business, among other things. The capital raised “will ensure that we will have an adequate foundation to support our clients and maintain revenue growth,” Kozlowski said in the release.
Piper Jaffray was the placement agent and financial adviser.
The offering comes just days after the company reported another quarterly loss and the hiring of a new chief operating officer.