LANSING, Mich. and PHOENIX, April
26 /PRNewswire-FirstCall/ -- Capitol Bancorp Limited (NYSE:
CBC) announced today that it entered into definitive agreements
with several institutional investors on April 23, 2010 for a registered direct offering
of 2,500,000 shares of previously unissued common stock at a price
of $3.00 per share with total
proceeds of $7.5 million. In
addition to the issuance of common shares, Capitol will issue to
each investor one warrant exercisable for one common share for
every two common shares purchased with an exercise price of
$3.50 per share. The warrants
are exercisable immediately and expire on April 23, 2013. The common shares sold, the
warrants and the shares underlying the warrants are to be issued
under Capitol's Form S-3 shelf registration statement that was
previously declared effective by the Securities and Exchange
Commission on June 9, 2008.
"This transaction will further support our strategic initiatives
to enhance capital resources and support balance sheet
strength. The ability to opportunistically access outside
capital effectively augments our existing select affiliate
divestiture program that is serving to deleverage consolidated
assets while providing for the efficient allocation of equity
across our multi-state network," said Capitol's Chairman and CEO
Joseph D. Reid.
Capitol expects to use the net proceeds for general working
capital purposes. The offering is expected to close on or
before Wednesday, April 28, 2010,
subject to satisfaction of customary closing conditions.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw
Capital Group, Inc. (Nasdaq: RODM), acted as the exclusive
placement agent for the transaction.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. Any offer will be
made only by means of a prospectus, including a prospectus
supplement, forming a part of the effective registration statement.
Copies of the prospectus supplement together with the
accompanying prospectus can be obtained at the Securities and
Exchange Commission's website at http://www.sec.gov or from Rodman
& Renshaw, LLC, 1251 Avenue of the Americas, 20th Floor,
New York, NY 10020.
About Capitol Bancorp Limited
Capitol Bancorp Limited (NYSE: CBC) is a $5.1 billion national community banking company
with a network of separately chartered banks in 17 states. Founded
in 1988, Capitol Bancorp Limited has executive offices in
Lansing, Michigan, and
Phoenix, Arizona.
www.capitolbancorp.com
SOURCE Capitol Bancorp Limited