Veteran bank investor Ken Lehman now has a 39.4% stake in BayFirst Financial in St. Petersburg, Fla.
Lehman acquired nearly 750,000 shares of common stock as part of a rights offering, adding to a major recapitalization and leadership overhaul at the company.
Lehman, who joined BayFirst’s board earlier this year, was the backstop purchaser in the company’s recent rights offering, using personal funds and his Roth IRA, according to a regulatory filing. He now owns 12.25 million shares, with sole voting and investment authority.
The investment adds to a significant recap at the $1.2 billion-asset company. In May, BayFirst announced an $80 million private investment in convertible preferred stock as it sought to strengthen its capital position and return to profitability. The company named Alfred Rogers, a former chief lending officer at USAmeribank, as president and CEO, succeeding Tom Zernick.
The May announcement identified Lehman as a new investor and prospective board member, pending regulatory approval. The latest filing identifies him as a director of BayFirst and BayFirst National Bank.
Lehman’s investment agreement also gives him rights to acquire certain additional equity or equity-linked securities issued by BayFirst to maintain his proportional ownership, subject to specified exceptions. Those provisions could allow him to preserve his stake through future capital raises.
Lehman said in the filing that he considers the shares a prudent investment and intends to continue evaluating the company’s financial condition, management, capital structure and prospects. He disclosed no specific plans for a new transaction or strategic change, while reserving the right to engage with management and other shareholders on the company’s direction.