Vineyard National Bancorp in Rancho Cucamonga, Calif., said Thursday that it plans to raise $31.8 million by selling 1.2 million shares of common stock to three institutional investors in a direct offering.
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The sale is expected to close today. The shares were priced at $26.50, a 4.3% discount to Wednesday's closing price. Royal Bank of Canada's RBC Capital Markets was the placement agent.
Vineyard said it is raising the money to increase liquidity and capital ratios, which are expected to decline after it buys the $228 million-asset Rancho Bank in San Dimas, Calif. The $57.8 million cash deal was announced in April and is expected to close in the third quarter.
