SAN DIEGO, Calif.–(PRNewswire)–Bank of Southern California, N.A. (OTC Pink: BCAL), a community business bank headquartered in San Diego, announced today the successful completion of a capital raise of approximately $12 million through the issuance of common stock in a private placement to institutional and accredited individual investors at a price of $12.00 per share. The Bank also announced its plans to reorganize into a holding company, Southern California Bancorp, subject to shareholder and regulatory approval.
The new capital was raised in connection with the Bank’s pending acquisition of CalWest Bancorp (OTCBB: CALW), the holding company for CalWest Bank, previously announced in October. Bank of Southern California entered into a definitive agreement with CalWest Bancorp on October 21, 2019, which is expected to close in the first half of 2020, subject to customary closing conditions. The Bank is forming a holding company, Southern California Bancorp, to facilitate the CalWest transaction and to support the Bank’s future growth. In addition to helping facilitate the new holding company’s funding of the all-cash acquisition, the capital raise will further support the Bank’s successful strategy of driving both organic growth and increasing its geographic footprint throughout Southern California.
Nathan Rogge, President and CEO of Bank of Southern California stated that proceeds from the offering will be used to strengthen the Bank’s balance sheet and further support its expansion in the Southern California market. “We are pleased with the capital raise effort and will begin 2020 with additional capital to execute our growth strategies,” Rogge added. “The strong interest that we received from individual and institutional investors demonstrates the investment community’s endorsement and confidence in Bank of Southern California’s performance and future value.”
The Bank was represented by MJC Partners, LLC, who served as the sole placement agent for the offering.