Published:
Monarch Financial Completes Private Offering and Raises $7.2 Million in Common Stock
CHESAPEAKE, Va., July 3 /PRNewswire-FirstCall/ -- Monarch Financial
Holdings, Inc. (Nasdaq: MNRK), parent of Monarch Bank, announced that
effective on June 30, 2008, it had sold $2.1 million of common stock in the
second closing of a private placement in which it sold a total of 774,110
shares of common stock with gross proceeds of $7.2 million in additional
equity capital. The first closing of the private placement was announced on
June 10, 2008. In this placement, accredited investors purchased 704,309
shares at $9.25 per share, a discount to current market price to reflect the
restrictions placed on the newly issued shares, and members of the corporate
board of directors and senior management purchased 69,801 shares at $9.90 per
share, the closing price of the Company's common stock on June 6, 2008, which,
in accordance with NASDAQ guidelines on purchases by company insiders, is
considered to be the market value of purchased shares. Monarch sold the
private placement to local investors, institutional investors, board members,
and members of management.
"We are pleased to close the private placement and bring in an additional
$2.1 million to add to our previously announced sale of $5.1 million," stated
Brad E. Schwartz, Chief Operating and Financial Officer. "We remain focused on
using this capital to support our growth initiatives and maintain our already
strong balance sheet." Monarch Financial Holdings and Monarch Bank are
recognized as "Well Capitalized" by banking regulators, the highest capital
rating available.
The Company agreed to pay to the placement agent for the private placement
commissions of $318,382. The net proceeds of the Offering, after deducting
commissions and expenses, will be approximately $6.8 million. Monarch
Financial Holdings, Inc. now has 5,647,175 shares of common stock outstanding.
The newly issued stock was exempt from the registration requirements of
the Securities Act of 1933 and is subject to substantial restrictions as to
transferability until such time as it becomes registered. The proceeds from
the sale of the shares will be used by the Company for working capital and
general corporate purposes, including supporting its growth initiatives.
Monarch will rely on Section 4(2) of the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder, including Rule 506 of
Regulation D, for the exemption from registration for the sale of such shares.
This press release does not constitute an offer to sell or the solicitation of
an offer to buy the securities.
Monarch Financial Holdings, Inc. is the one-bank holding company for
Monarch Bank. Monarch Bank is a community bank with two offices inChesapeake,
four offices inVirginia Beach, and two offices inNorfolk, Virginia. OBX
Bank, a division of Monarch Bank, operates one office inKitty Hawk, North
Carolina. Services are also provided through fifty-two ATMs located in the
South Hampton Roads area and the Outer Banks ofNorth Carolina, and "Monarch
Online" consumer and business internet banking (http://www.monarchbank.com and
http://www.OBXBank.com). Our subsidiaries/divisions include Monarch Bank, OBX
Bank, Monarch Mortgage (secondary mortgage origination), Coastal Home
Mortgage, LLC (secondary mortgage origination), Home Mortgage Solutions, LLC
(secondary mortgage origination), Virginia Asset Group, LLC (investment and
insurance solutions), Real Estate Security Agency, LLC (title agency) and
Monarch Capital, LLC (commercial mortgage brokerage). We offer investment
services through our ownership in BI Investments, LLC (investments and asset
management), and insurance services through our ownership in Bankers
Insurance, LLC (full-service insurance agency). The shares of Monarch
Financial Holdings, Inc. are publicly traded on the NASDAQ Capital Market
under the symbol "MNRK".
This press release may contain "forward-looking statements," within the
meaning of federal securities laws that involve significant risks and
uncertainties. Statements herein are based on certain assumptions and analyses
by the Company and are factors it believes are appropriate in the
circumstances. Actual results could differ materially from those contained in
or implied by such statements for a variety of reasons including, but not
limited to: changes in interest rates; changes in accounting principles,
policies, or guidelines; significant changes in the economic scenario;
significant changes in regulatory requirements; and significant changes in
securities markets. Consequently, all forward-looking statements made herein
are qualified by these cautionary statements and the cautionary language in
the Company's most recent Form 10-K and 10-Q reports and other documents filed
with the Securities and Exchange Commission. The Company does not undertake to
update forward-looking statements to reflect circumstances or events that
occur after the date the forward-looking statements are made.
SOURCE Monarch Financial Holdings, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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