FNBH Bancorp Inc. announced that it has received $17.5 million in funding.
On the same date, the company announced Stanley B. Dickson, a director of the company will invest at least $7.5 million in the transaction and the company will pay a commitment fee equal to 6% of the total amount of his investment.
On August 7, 2013, FNBH Bancorp Inc. the company announced that it has received $17,100,000 in first tranche of the transaction. Of this amount, approximately $8,500,000 is expected to be invested by current directors and executive officers of the company, including Stanley B. Dickson investment. series B mandatorily convertible non-cumulative preferred shares is convertible into approximately 24,400,000 shares of the company's common stock at a conversion price of $0.70.
On November 22, 2013, the company announced that the transaction is expected to close by December 2013 subject to the satisfaction of certain conditions.
On December 11, 2013, FNBH Bancorp Inc. closed the transaction. The company has received $17,500,000 in the transaction. The company issued 17,500 series B mandatorily convertible non-cumulative preferred shares at a price of $1,000 per share. The company received net proceeds of $16,400,000 after offering expenses of $1,100,000. The preferred shares are convertible into a total of 25,000,000 shares. Stanley B. Dickson purchased 51,743 shares from Moross L.P. for a total purchase price of $36,220. He also purchased 7,500 shares of Series B Preferred Stock from the issuer for a total net purchase price of $7,050,000.