The Savannah Bancorp, Inc. Completes $12.2 Million Private Placement Sale of Common Stock
August 30 2005 - 4:59PM
Business Wire
The Savannah Bancorp, Inc. (Nasdaq: SAVB), announced the completion
of the sale of 397,273 shares of common stock to certain accredited
investors for approximately $12.2 million in a private placement
sale of unregistered securities. Non-affiliated accredited
investors purchased 366,148 shares at $30.50 per share and
affiliated accredited investors purchased 31,125 shares at $33.16.
NASD rules require that affiliated investors' subscription price be
at the closing bid price on the day prior to execution of the
subscription agreements unless shareholder approval is obtained for
a discount to market value. Proceeds to the Company, net of
placement fees and estimated expenses, were approximately $11.6
million. The Company's placement agent was Sterne, Agee &
Leach, Inc. The Company has 4,591,042 shares outstanding after
completion of the private placement sale. Of the net proceeds from
the private offering, $10 million are intended to be used for the
initial capitalization of Harbourside Community Bank, FSB (In
Organization), a proposed new banking company on Hilton Head
Island, SC. The remainder of the proceeds will be used for general
corporate purposes. This announcement does not constitute an offer
to sell, or the solicitation of an offer to buy, any securities and
shall not constitute an offer, solicitation or sale in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. The common stock was sold only to accredited investors
pursuant to the exemption provided by Regulation D promulgated
under the Securities Act of 1933. The shares of common stock have
not been registered under the Securities Act of 1933, as amended,
or any state securities laws, and they may not be offered or sold
in the United States in the absence of an effective registration
statement or an applicable exemption from registration
requirements. The Company has agreed to file a registration
statement with the SEC covering resales of the shares sold in the
private placement. About The Savannah Bancorp, Inc. The Savannah
Bancorp, Inc., a bank holding company for The Savannah Bank, N.A.
in Savannah, GA and Bryan Bank & Trust in Richmond Hill, GA,
had total assets of $689 million as of June 30, 2005. The company
provides banking, trust and mortgage services from six full service
offices in Savannah and Richmond Hill, GA, and residential lending
services from its loan production office on Hilton Head Island, SC.
Forward-looking Statements Certain statements in this news release
regarding future expectations and plans may be regarded as
"forward-looking statements" within the meaning of the Securities
Litigation Reform Act. 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. 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. Any such statements
are made in reliance on the safe harbor protections under the
Private Securities Litigation Reform Act of 1995.
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