FRBK - Republic First Bancorp ends $125M capital raise

2023-07-17 10:20:02 ET

Republic First Bancorp ( NASDAQ: FRBK ) said it agreed with affiliates of Castle Creek Capital and Cohen Private Ventures to mutually terminate a $125 million capital raise. Republic First ticked up 0.5%.

"Given current market conditions – especially the widespread tightening of access to the equity capital markets across the banking sector – the parties do not believe that participants could be found on those terms by Sept. 9," Republic First said in a statement on Monday.

The news comes after Republic First's late May announcement that Andrew B. Cohen was elected independent chairman effective June 1, 2023, and Harry D. Madonna, who founded the company in 1988, stepped down from the chairman role, amid a fight with an investor.

"We continue to remain impressed with how the new Republic First management team is managing the bank in a very challenged environment," Tony Scavuzzo, Managing Principal of Castle Creek said in the statement on Monday. "We look forward to following them as they continue to execute on their strategic plan."

In March, Republic First had planned a private equity placement with Castle Creek Capital and Cohen Private Ventures. But then, in May, it said its moves to wind down its New York City commercial lending business and mortgage origination business had improved its capital position . At that point, it said it decided to wait for market conditions to stabilize before identifying additional participants in the capital raise.

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