Monarch Financial Holdings, Inc. News
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 in Chesapeake, four offices in Virginia Beach, and two offices in Norfolk, Virginia. OBX Bank, a division of Monarch Bank, operates one office in Kitty Hawk, North Carolina. Services are also provided through fifty-two ATMs located in the South Hampton Roads area and the Outer Banks of North 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.
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