Pinnacle Bank in Gilroy, Calif., is looking to raise about $3 million through a rights offering.

The $281 million-asset company said Monday that it plans to sell 429,0000 shares of common stock to existing shareholders at a subscription price of $7 each. The bank may sell any unsold shares to nonshareholders.

The bank's shares were trading around $8.50 at midday, up nearly 5% from Friday's close.

The rights offering is scheduled to start after the Dec. 12 record date and terminate on Jan. 20.

Pinnacle did not disclose how it plans to use the proceeds from the offering. Susan Black, the bank's president and chief executive, was not immediately available for comment on Monday.

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