Central Federal Corp. in Fairlawn, Ohio, is set to bring in a new chief executive and president after it raises up to $37.5 million.
The company said in a Friday filing with the Securities and Exchange Commission that it is offering common stock at $1 a share. Overall, the $278 million-asset company plans to sell about 25 million shares in a rights offering and another 5 million shares from standby purchase agreements.
Net proceeds are expected to total up to $28.7 million. Central Federal said it plans to invest $13.5 million into its CFBank, which was hit in May with a cease-and-desist order from the now-defunct Office of Thrift Supervision, to improve the unit’s regulatory capital.
In conjunction with the capital raise, Central Federal said it expects Timothy O’Dell to succeed Eloise MacKus as its CEO. O’Dell, a former executive at Fifth Third Bancorp, is a principal at Chetwood Group. Mackus will remain the company’s general counsel.
Thad Perry is expected to become the company’s president, succeeding Therese A. Liutkus, who will remain Central Federal’s chief financial officer and treasurer. Perry is a former senior partner at Accenture.
Finally, the company is set to add five directors including O’ Dell and Perry, the filing said.