FAIRFAX, Va.--(BUSINESS WIRE)--The Freedom Bank of Virginia (OTCQX: FDVA) (the “Bank”) today announced the closing of the remaining $6.0 million of the previously disclosed 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 Bank had previously closed on $10.0 million of the gross proceeds on December 29, 2015. The proceeds from the capital raise will be used for general corporate purposes, including supporting the growth of the Bank.
On March 17, 2016, the Bank offered and sold a total of 705,882 shares of its common stock at a price of $8.50 per share, resulting in gross proceeds to the Bank of $6.0 million. Funds affiliated with Patriot Financial Partners GP II, LLC purchased in this closing an additional 77,175 shares of the Bank’s Class A Voting Common Stock and 628,707 shares of the Bank’s Class B Non-voting Common Stock.
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 Class A Voting 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.
