Jacksonville Bancorp (JAXB) plans to raise up to $50 million by selling securities to a group of investors led by the Florida company's biggest shareholder.

The $583 million-asset company has entered into a stock purchase agreement to privately place 50,000 shares of preferred stock at $1,000 a share to a group of investors that includes CapGen Capital Group. The company said in a regulatory filing Monday that CapGen may purchase up to 25,000 shares.

Jacksonville Bancorp said it would use the proceeds to primarily support Jacksonville Bank's capital, according to a stock-purchase agreement filed with the Securities and Exchange Commission. At March 31, the bank's core capital (leverage) ratio was 7.48% and its total risk-based capital ratio was 10.28%, according to the Federal Deposit Insurance Corp.

Under the agreement, the investors have preemptive rights for public or private offerings of common stock during a 24-month period after the closing of the transaction to allow the investors to maintain their percentage interests of common stock. However, it would not apply to any public stock offering of up to $10 million that would begin within six months of the agreement's closing.

The agreement may be terminated if it does not close before Oct. 31. Jacksonville agreed to reimburse CapGen for its expenses related to the agreement and agreed to pay a fee of $500,000 to be divided among the investors based on their investment amounts in the agreement.

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