The parent of Oxnard-based Ventura County National Bank says it has successfully completed its common stock rights offering.
Ventura County National Bancorp said gross proceeds from the offering amounted to $6.5 million. A total of 2.8 million shares were issued at $2.25 per share. About 1.6 million shares were sold to shareholders exercising rights and 1.2 million shares were sold to standby investors.
Proceeds of the offering will enable Ventura County National Bank to comply with an agreement with the Comptroller of the Currency requiring the bank to raise its capital reserves, the holding company said.
The company said about $3.4 million of the proceeds will be invested in Ventura County National Bank. The remainder will be used to retire debt, pay the costs of the offering, and for general corporate purposes.
"We attracted a number of experienced and knowledgeable institutional investors, but more importantly, over 58% of the proceeds of the offering came from existing shareholders and investors who purchased rights in the market," said Richard S. Cupp, the holding company's president and chief executive.
He said institutional investors had agreed to invest up to $4.5 million, but that because of strong demand from rights holders, only $2.7 million was allocated to the institutions.