FREMONT, Calif., Oct. 26, 2011 /PRNewswire/ -- Pan Pacific Bank (the "Bank") (OTCBB: PPFC) announced today that it successfully completed the first phase of its private placement of the Bank's common stock on October 21, 2011. At the first close 2,517,500 shares of common stock were offered to accredited investors for aggregate gross proceeds of $5,035,000 before expenses. Shares were offered to certain accredited investors and institutions for $2.00 per share.
Pan Pacific anticipates a second closing of the private placement in which additional shares will be issued at $2.00 per share. On June 17, 2011 Pan Pacific Bank announced that Chicago-based Taylor Asset Management filed the requisite applications seeking regulatory approval to invest up to 22.5% in the Bank's outstanding voting securities. Approval was received prior to the closing on October 21, 2011.
ParaCap Group LLC is acting as sole placement agent in connection with the private placement.
"As the economy continues to stabilize, we believe that this new capital will enable Pan Pacific to take advantage of many new opportunities," said Wayne Doiguchi, Pan Pacific Bank's Chairman and Chief Executive Officer. "The experience and counsel of our new investors will also help Pan Pacific to more quickly reach its goals."
Bank President Joseph Ching added, "Although in many respects, this private placement starts a new chapter for Pan Pacific, we remain true to the values and relationships we have cultivated over the years."
The private placement was made solely to accredited investors. The offer and sale of the Common Stock has been authorized by a permit issued by the California Department of Financial Institutions. The permit is permissive only and does not constitute a recommendation or endorsement of the Common Stock. The Common Stock is exempt from registration under Section 3(a)(2) of the Securities Act of 1933, as amended. The shares of Common Stock are not savings or deposit accounts and are not insured by the FDIC or any other governmental agency.
This press release is neither an offer to sell nor the solicitation of an offer to purchase the Common Stock or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such an offer, solicitation or sale is unlawful.
About Pan Pacific Bank
Pan Pacific Bank, a California state-chartered bank, was founded in July 2005 to provide full banking services to individuals, professionals, and to small to medium sized businesses, primarily in Alameda County, Santa Clara County and, to a lesser extent, Contra Costa County, California.
Forward Looking Statements
This press release contains forward looking statements, which include, but are not limited to, statements containing the words "believes," "anticipates," "intends," "expects," and words of similar import. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Bank's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions in those areas in which the Bank operates, demographic changes, competition, fluctuations in interest rates, changes in business strategy or development plans, changes in governmental regulation, credit quality, the availability of capital to fund the expansion of the Bank's business, and other risk factors. The forward-looking statements in this press release speak only as of the date of the press release, and the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements. For additional information about the Bank, please visit the Bank's website at www.panpacificbank.com.
SOURCE Pan Pacific Bank