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Company Announces that Republic and Affiliates of Castle Creek Capital and Cohen Private Ventures Have Agreed to Mutually Terminate Previously Announced Capital Raise
Releases Presentation Detailing Strategic Initiatives and Republic's Significant Opportunities
PHILADELPHIA, July 17, 2023 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ:FRBK) ("Republic" or the "Company"), the parent company of Republic First Bank d/b/a Republic Bank (the "Bank"), today announced that Chairman Andrew B. Cohen and President and Chief Executive Officer Thomas X. Geisel have sent a letter to shareholders. The letter explains the challenges Republic has faced, details the elements of the strategy being executed by the new management team and overseen by a refreshed Board, and highlights the significant opportunities the Company has to deliver long-term value. The Company also issued a new presentation covering in detail the strategic initiatives underway at Republic.
Republic also announced that it, affiliates of Castle Creek Capital (together with its affiliates and co-investors, "Castle Creek") and an affiliate of Cohen Private Ventures, LLC ("Cohen Private Ventures") have mutually decided to terminate the previously announced agreement (the "Agreement") to raise $125 million in capital (the "Capital Raise") for the Company through a private placement of equity securities. The Capital Raise was predicated on identifying additional investors to participate at the same $2.25 price per share as Castle Creek and Cohen Private Ventures by September 9, 2023. 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 September 9th.
Thomas Geisel commented:
"We are executing on a clear strategy to address legacy issues stemming from prior management, drive profitability and enhance shareholder value. Importantly, this plan does not necessitate raising new capital in the near term. Given the dislocation in the banking sector that has occurred since the announcement of the Capital Raise, we believe its termination is in the best interests of Republic and all our stakeholders. We of course remain open to evaluating a future capital transaction as part of our value-creating strategy as market conditions stabilize and improve."
Tony Scavuzzo, Managing Principal of Castle Creek, stated:
"We continue to remain impressed with how the new Republic First management team is managing the bank in a very challenged environment. We look forward to following them as they continue to execute on their strategic plan."
Shareholders can sign up to receive updates and announcements from Republic by visiting the investor relations page of the Company's website.
About Republic Bank
Republic Bank is the operating name for Republic First Bank. Republic First Bank is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its 34 offices located in Atlantic, Burlington, Camden, and Gloucester Counties in New Jersey; Bucks, Delaware, Montgomery and Philadelphia Counties in Pennsylvania and New York County in New York. For more information about Republic Bank, please visit myrepublicbank.com.
Posted In: FRBK
