Company Release – 11/8/2017
Atlanta, Ga.--- ABB Financial Group, Inc. (the “Company”), the holding company for Affinity Bank, today announced that the Company has completed the issuance of $13 million in new common stock (the “Offering”) to certain existing and new shareholders, effective November 6. The issuance included shares issued via a securities purchase agreement (the “Agreement”) with Kenneth R. Lehman, a private investor.
Pursuant to the Agreement and final terms of the offering, Mr. Lehman purchased from the Company 2,571,250 shares of common stock at a price of $4.00 per share, for an aggregate purchase price of approximately $10.3 million. Other investors purchased an additional 678,750 shares for the same per-share price. Following the completion of the Offering, the Company has 5,034,145 shares of common stock outstanding.
“We believe this Offering positions Affinity Bank as one of the premier commercial banking franchises in Atlanta and allows us to continue to execute on our strategy of serving the dental industry and other small businesses throughout the region,” according to Ed Cooney, President of the Company. “We appreciate the tireless efforts of our employees and Board of Directors to complete the Offering, and welcome Ken Lehman and other new investors to our family.”
Banks Street Partners, LLC, through its subsidiary, BSP Securities, LLC, served as sole placement agent for the Offering and Miller & Martin acted as the Company’s legal counsel. Bryan Cave, LLP served as legal counsel to Mr. Lehman.
About ABB Financial Group, Inc.
Pro forma for the Offering, ABB Financial Group, Inc. has approximately $283 million in total assets. The Company’s wholly owned subsidiary, Affinity Bank, offers a broad range of financial services to small businesses and individuals through its single location in Atlanta.
The Agreement discussed above involves the sale of securities in a private transaction that will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and will be subject to the resale restrictions under the Securities Act. Such securities may not be offered or sold absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or a solicitation of an offer to buy any shares of common stock, nor shall there by 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.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, which can be identified by words such as “will,” “plan,” “expect,” “likely,” “project,” “may,” and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding the Company’s views regarding how the Offering will position the Company for future growth. Forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, and, therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. The Company does not assume any duty to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise. Risk factors relating to the impact of the Offering include, without limitation, a downturn in the economy, particularly in the Company’s markets, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses.
ABB Financial Group, Inc.
Edward J. Cooney, President
Source: ABB Financial Group, Inc.