A pair of banking companies have extended their deadlines for rights offerings due to technical difficulties.
TIB Financial Corp. in Naples, Fla., said late Friday that shareholders now have until Jan. 18 to exercise subscription rights. The original deadline was Jan. 10. The $1.7 billion-asset company said in a press release that the extension was prompted by "interruptions in transportation systems during the recent holiday season."
The offering gives shareholders at July 12, 2010, the opportunity to buy common stock at $15 a share to offset dilution caused by the $175 million in capital TIB received from North American Financial Holdings Inc., a holding company backed by private equity. That deal closed in the third quarter. The rights offering would generate up to $22.4 million in additional capital for TIB.
Farmers National Banc Corp. in Canfield, Ohio, also announced Friday that it was pushing back its rights offering, to Jan. 21, from Jan. 14, because of delays in mailing and deliveries. The $1 billion-asset company's offering gives shareholders the right to buy one share for every five shares they own, at $3 a share. If fully exercised, the offering would bring in up to $8.8 million in capital.
The deal was announced last month along with the news that the company had entered into purchase agreements with a dozen investors to invest up to $6.2 million, also at $3 a share.