GASTONIA, N.C.--(BUSINESS WIRE)--AB&T Financial Corporation (“AB&T” or the “Company”) (OTC Pink: ABTO), the parent company of Alliance Bank & Trust Company (the “Bank”), today reported the completion of the private placement of $7.8 million of common equity at a price of $0.40 per share to accredited investors. The Company intends to use the proceeds to bolster the capital position of the Bank.
Also on May 29, 2015, AB&T completed a transaction with P. Byron DeFoor of Ooltewah, Tennessee. Mr. DeFoor is a strategic investor with nearly thirty years of experience in a variety of businesses with particular expertise in the development of commercial real estate and residential communities. Mr. DeFoor is also a majority shareholder of Ooltewah, Tenn.-based Community Trust & Banking Company. In the transaction, Mr. DeFoor directly invested $3.5 million and also purchased all of the Company’s series A preferred shares from private investors. The Company originally issued the preferred shares to the U.S. Department of the Treasury in 2009 as part of the Treasury’s Capital Purchase Program. As part of the transaction, Mr. DeFoor exchanged all the preferred shares for common shares in AB&T. As a result of these transactions, Mr. DeFoor became the owner of a majority of the outstanding shares of the Company’s common stock.
In connection with the transactions with Mr. DeFoor, AB&T has appointed F. Alan Smith and Craig D. Taylor to its board of directors and to the board of directors of Alliance Bank & Trust Company. Mr. Smith and Mr. Taylor became chairman and vice chairman, respectively, of both boards.
Don J. Harrison, President and CEO, commented, “This private placement is the culmination of years of effort by many individuals working on behalf of the Company. We believe that the new capital will enable Alliance Bank & Trust Company to continue to fulfill its mission to provide banking services to the customers and communities we serve.”
Mr. Harrison continued, “We’re also very excited to begin a new chapter in our history with Byron DeFoor and his team. We’ve been impressed with them as we’ve worked on this transaction and look forward to our partnership. We believe they will bring a wealth of experience and ideas to the table.”
Byron DeFoor commented, “I am excited about this investment in the Gastonia area and more specifically, Alliance Bank & Trust Company. Don Harrison and the rest of the leadership team have done terrific jobs guiding the bank the past couple of years and I believe the bank will have the opportunity to grow and thrive.”
Community Capital Advisors, Inc. served as financial advisor for the transaction. Wyrick Robbins Yates & Ponton LLP acted as legal counsel to the Company. Miller & Martin PLLC acted as legal counsel to Mr. DeFoor.
Alliance Bank & Trust Company, which opened in Gastonia, North Carolina in 2004, operates four North Carolina banking offices, in Gastonia (2), Kings Mountain and Shelby.