Centric Financial Corporation Exceeds Goal to Complete $12 Million Capital Raise to Meet Growth in Lending
Harrisburg, Pennsylvania (PRWEB) November 24, 2015 -- Centric Financial Corporation (OTC Pink: CFCX) (the “Company”), the holding company of Centric Bank, announced today that it has closed on the sale of $12 million of the Company’s common stock in a private placement offering. The Company issued 2,285,715 shares of common stock to accredited investors at a purchase price of $5.25 per share (the “Transaction”).
“This offering was completed in 30 days, expanded twice to meet investor demand, and was oversubscribed. Investor support for our highly successful offering is a vote of confidence for our growth strategy, and a clear signal to the business communities we serve that we are well-capitalized and prepared to finance regional business growth. The estimated $11.3 million in net proceeds from the Transaction will be used to support operational growth, increase organic loan growth, redouble SBA opportunities to continue as the #1 SBA lender in central Pennsylvania, and expand our service footprint in the suburban Philadelphia region and throughout Pennsylvania,” says Patricia A. Husic, President & CEO of Centric Financial Corporation and Centric Bank.
Centric Financial Corporation also will use a portion of the proceeds to redeem $1.5 million of the shares of the Series A Preferred Stock issued to the U.S. Treasury in connection with the Company’s participation in the SBLF Program. The Company expects to issue $6 million of subordinated debt prior to year-end to fully redeem the remaining SBLF shares issued to the U.S. Treasury.
Boenning & Scattergood, Inc. was the sole placement agent for Centric Financial Corporation. Rhoads & Sinon, LLP served as legal counsel to the Company in connection with the stock offering and is Centric’s corporate and regulatory legal counsel. Ober|Kaler served as legal counsel for the placement agent. The Company’s common stock was offered and sold solely to accredited investors in reliance on an exemption from registration under Section 4(a) (2) of the Securities Act of 1933, as amended and Rule 506(c) of Regulation D under the Securities Act.
About Centric Bank
A two-time Best Places to Work and Top 50 Fastest-Growing Companies for four years, Centric Bank is headquartered in Harrisburg, Pennsylvania with assets of $355 million and remains the leader in organic loan growth in central Pennsylvania as well as the market’s top provider of SBA loans. A locally owned, locally loaned community bank, Centric Bank provides highly competitive and pro-growth core financial services to businesses, professionals, individuals, and families. With a Five-Star Bauer Financial Rating, Centric Bank is also ranked as a Top 20 Lender for SBA Loans in the Philadelphia Region.
Founded in February 2007, Pennsylvania-based Centric Bank has financial centers located in Harrisburg, Hershey, Mechanicsburg, and Camp Hill, as well as a commercial lending office in suburban Philadelphia. To learn more about Centric Bank, call 717.657.7727 or visit CentricBank.com. Connect with them on Twitter at @CentricBank and Facebook and LinkedIn at Centric Bank.
Centric Financial Corporation is traded over the counter (OTC-Pink) with the ticker symbol CFCX.
Anne Deeter Gallaher, Deeter Gallaher Group LLC, http://www.centricbank.com, +1 717.525.8042, [email protected]
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