GBank Financial Holdings Inc. Announces Closing of $20 Million Private Placement of Common Stock

Rhea-AI Summary

GBank Financial Holdings Inc. (OTCQX: GBFH), the parent company of GBank, has successfully completed a $20 million Private Placement Offering of common stock. The net proceeds, after deducting expenses, are approximately $19.2 million. Raymond James & Associates, Inc. and Janney Montgomery Scott acted as financial advisors for the private placement.

Edward M. Nigro, Executive Chairman of GBank Financial Holdings Inc., expressed that this additional capital will enable the company to execute its strategic growth initiatives. He also acknowledged the confidence investors have placed in the company.

The private placement was supported by financial advisory services from Raymond James & Associates, Inc., Janney Montgomery Scott , and Chapin Davis, Inc. Legal counsel was provided by Sklar Williams PLLC for GBank Financial Holdings Inc., and Nelson Mullins Riley & Scarborough LLP for the financial advisors.

Positive

• Successful completion of $20 million Private Placement Offering
• Net proceeds of approximately $19.2 million
• Additional capital to support strategic growth initiatives

Negative

• None.

LAS VEGAS, Oct. 16, 2024 /PRNewswire/ -- GBank Financial Holdings Inc. (the "Company") (OTCQX: GBFH), the parent company of GBank (the "Bank"), is pleased to announce the completion of its $20.0 million Private Placement Offering. Raymond James & Associates, Inc. and Janney Montgomery Scott LLC served as financial advisors on the private placement (presentation link). After deducting offering related expenses, net proceeds to the Company shall be approximately $19.2 million.

Edward M. Nigro, Executive Chairman of GBank Financial Holdings Inc., stated, "This additional capital positions us to execute on our strategic growth initiatives. We deeply appreciate the confidence our investors have placed in us and look forward to continuing the growth and performance they expect from GBank."

Raymond James & Associates, Inc., Janney Montgomery Scott LLC, and Chapin Davis, Inc. provided financial advisory services for the Private Placement. Sklar Williams PLLC provided legal counsel to GBank Financial Holdings Inc., and Nelson Mullins Riley & Scarborough LLP served as legal counsel to the financial advisors.

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Cautionary Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding certain of the Company's goals and expectations with respect to future events that are subject to various risks and uncertainties, and statements preceded by, followed by, or that include the words "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions. These statements are based upon the current belief and expectations of the Company's management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include, but are not limited to: the impact on us or our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; regulatory considerations; our ability to recognize the expected benefits and synergies of our completed acquisitions; the maintenance and development of well-established and valued client relationships and referral source relationships; acquisition or loss of key production personnel; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. These forward-looking statements are based on current information and/or management's good faith belief as to future events. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The forward-looking statements are made as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

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SOURCE GBank Financial Holdings Inc.

FAQ

How much did GBank Financial Holdings Inc. (GBFH) raise in its recent private placement?

GBank Financial Holdings Inc. (GBFH) raised $20 million in its recent private placement of common stock.

What are the net proceeds for GBFH from the private placement after expenses?

The net proceeds for GBFH from the private placement, after deducting offering-related expenses, are approximately $19.2 million.

Who were the financial advisors for GBFH's private placement?

Raymond James & Associates, Inc. and Janney Montgomery Scott served as financial advisors for GBFH's private placement.

What does GBFH plan to do with the capital raised from the private placement?

GBFH plans to use the additional capital to execute on its strategic growth initiatives.