California BanCorp Completes Private Offering of Common Stock
OAKLAND, Calif., (August 16, 2018) – California BanCorp (OTCQX: CALB) (“CALB”), the holding company for California Bank of Commerce, today announced the closing of a successful private placement with certain accredited investors for the issuance and sale of a total of 1,177,000 shares of common stock for estimated gross proceeds of $25.0 million. The proceeds will be used for early retirement of $11.5 million of holding company capital loans with the remainder used for other general corporate purposes.
“We are very pleased with the outcome of our private placement, which generated broad based support from high-quality investors. The success of this capital raise reflects the strength of our Bank, and the increased capital base supports our strategic plan and growth initiatives,” says Steve Shelton, President and CEO of California BanCorp.
The shares were offered on a best-efforts basis through Keefe, Bruyette & Woods, A Stifel Company, as lead placement agent, and The Hovde Group, as co-placement agent. Stinson Leonard Street LLP served as CALB’s legal advisor. Sheppard Mullin Richter & Hampton LLP served as placement agents’ counsel.
About California BanCorp and California Bank of Commerce
California BanCorp, through its wholly-owned subsidiary, California Bank of Commerce, offers a broad range of commercial banking services to closely held businesses and professionals located throughout the San Francisco Bay Area. The stock trades on the OTCQX marketplace under the symbol CALB. For more information on California BanCorp and California Bank of Commerce, call us at (510) 457-3751, or visit us at www.californiabankofcommerce.com.
Steven E. Shelton, (510) 457-3737
President and Chief Executive Officer
Randall D. Greenfield, (510) 457-3769
Senior EVP and Chief Financial Officer
Statements in this press release relating to California Bancorp’s plans, objectives, expectations or future performance are forward-looking statements. The words “believe,” “may,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “possible,” “seek,” “plan,” “strive” or similar words, or negatives of these words, identify forward-looking statements. These forward-looking statements are based on management’s current expectations. The Company’s actual results in future periods may differ materially from those indicated by forward-looking statements due to various risks and uncertainties.
The common stock to be offered and sold by CALB has not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws and may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the Securities Act and the securities laws of such state.