SUNL - Patriot National Bancorp stock soars after announcing recapitalization merger
Patriot National Bancorp (NASDAQ:PNBK) stock surges 35% after it announces a recapitalization and agrees to acquire American Challenger Development, a closely held firm, to create a digital-first national bank. Under the recapitalization, Patriot (PNBK) will issue $540M of newly issued voting and non-voting common stock priced at $17.69 per share, warrants for non-voting common stock, and preferred stock to funds associated with Oaktree Capital Management LP; Angelo, Gordon & Co. LP; and some other investors. Under the agreement to buy American Challenger, Patriot (PNBK) will issue 4,092 shares of PNBK common stock for each American Challenger common stock held; American Challenger preferred shareholders will get an amount in cash equal to $75,413.22 per share plus any accrued and unpaid dividends. The implied total transaction of the acquisition is $119M. As a result of the merger and recapitalization, former American Challenger shareholders will own ~ 13.8% of the combined company and
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Patriot National Bancorp stock soars after announcing recapitalization, merger