FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCBB: FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced that the subscription period of its previously announced rights offering (the “Rights Offering”) expired at 5:00 p.m., Eastern Time, on July 31, 2014. Subscription rights that were not properly exercised by such time have expired and are no longer exercisable.
Based on the preliminary results, the Company estimates that it will receive aggregate gross proceeds in connection with the Rights Offering and related transactions of $24.0 million dollars. The Company expects that it will receive the maximum amount permissible pursuant to the terms of the Rights Offering and that all basic subscriptions received will be filled. Based on the significant response to the Offering, the Company anticipates that only a fraction of the oversubscription requests will be satisfied.
The Company’s estimates above are preliminary, as the Rights Offering is subject to a finalization and verification process by the Company and the subscription agent, Registrar and Transfer Company, which the Company expects to be complete during the month of August 2014. After all allocations and adjustments contemplated by the terms of the Rights Offering have been effected, the Rights Offering will be completed and the Company will distribute shares of its common stock to holders of subscription rights who validly exercised their subscription rights and paid the subscription price in full. Any excess subscription payments received by the subscription agent and not used in the Rights Offering will be returned, without interest or penalty, as soon as practicable following completion of the Rights Offering.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any shares of common stock in the Rights Offering, nor shall there be any sale of such shares of common stock in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current beliefs and assumptions and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond the Company’s control, and which may cause results to differ materially from expectations. For a discussion of the most significant risks and uncertainties associated with the Company’s business, please review the Company’s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent reports. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Company’s expectations as of the date of this press release and speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.