Patriot National Bancorp in Stamford, Conn., will raise nearly $5.5 million after agreeing to sell common stock and warrants in a direct offering to accredited investors.
The company disclosed in a regulatory filing that it will sell about 4.8 million shares of stock and roughly 960,000 five-year warrants to purchase non-voting common stock to unnamed investors.
The common stock was sold at $1.15 a share, and one warrant will be issued to each investor for every five shares of common stock purchased. The warrants are exercisable no earlier than six months after the closing of the offering at an exercise price of $1.25 per warrant share.
The company intends to use the proceeds to invest capital in its bank and for other purposes that could include capital expenditures, working capital, interest payments, and to cover other expenses.