Tri-Valley Bank announced Friday that a private investor group has terminated a $6 million stock-purchase agreement.
The capital-raising effort by Tri-Capital LLC would have freed up capital constraints to allow Tri-Valley to grow.
The $89.2-million asset bank in San Ramon, Calif., did not say why the March 15 agreement was terminated. Yet it said in a press release that it "intends to seek alternative transactions, which may include a recapitalization."
Tri-Capital had said it would purchase nearly 15.9 million shares of Tri-Valley's common stock with an option of purchasing another 13.2 million shares, giving the group majority ownership of Tri-Valley.