FAIRFAX, Va.--(BUSINESS WIRE)--The Freedom Bank of Virginia (OTCQX: FDVA) (the “Bank”) today announced the entry into definitive purchase agreements for the private placement of an aggregate of $16.0 million of its common stock to institutional investors led by Patriot Financial Partners II, L.P. The proceeds from the capital raise will be used to support the growth of the Bank and for general corporate purposes. The Bank closed $10.0 million of the gross proceeds today and the remaining $6.0 million is expected to close in the first quarter of 2016.
CEO Craig Underhill stated, “The additional capital will support the robust growth of our loan portfolio and expanding base of core deposits, as well as the opening of additional locations.”
Chairman Richard Litman said, “We received tremendous interest from the institutional investment community and unfortunately we were not able to accommodate all of the interest. The Bank is honored to have Patriot Financial Partners as our Lead Investor with all of the benefits that accrue from their banking expertise and demonstrated capabilities in helping successful community banks grow and prosper.”
The shares are exempt from registration with the Securities and Exchange Commission pursuant to Section 3(a)(2) of the Securities Act of 1933, as amended. The Bank’s common stock is traded on the OTCQX U.S. Premier marketplace under the symbol “FDVA.”
Nelson Mullins Riley & Scarborough LLP served as counsel to the Bank. Silver Freedman Taff & Tiernan LLP served as counsel to Patriot Financial Partners.
Freedom Bank is a community bank with locations in Fairfax, Vienna, and Reston, Virginia. For information about Freedom Bank’s deposit and loan services, visit the Bank’s website at www.freedombankva.com.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Other risks that can affect the Bank are detailed from time to time in our quarterly and annual reports filed with the Federal Financial Institutions Examination Council and the OTCQX Marketplace. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.