Merchants Bancorp. (OTCBB:MBNC) announced a private placement of 5,102,041 common shares at $0.49 per share for gross proceeds of $2,500,000 on February 7, 2013. The company will also issue 5,102,025 warrants to the investor.

Each warrant entitles the holder to purchase an additional common share of the company at $0.04 per share, exercisable after three years from the date of issuance. The warrants will expire in five years from the date of issuance. The company will accept a minimum investment of $25,000 from each investor.

The transaction will see participation from 17 investors. The securities will be issued pursuant to Regulation D.