Six Founding Directors of James Monroe Bank to Invest in and Join Board of Freedom Bank of Virginia
Fairfax, VA (PRWEB) October 20, 2006
Freedom Bank of Virginia (Bulletin Board: FDVA.OB) today announced an agreement under which six of the founding directors of James Monroe Bank will invest approximately $ 4.1 million in Freedom Bank and join its Board of Directors. The Ategra Community Financial Institution Fund, LP, of Vienna, VA, is also investing $ 1 million. The investors will purchase 386,815 shares of common stock with attached warrants at a price of $ 13.25 per share. The eight-year warrants will allow the investors to purchase up to 232,089 shares of common stock , subject to certain contingencies, at $ 13.25 per share. As part of the transaction, the Bank plans an equity offering in the $ 6.9 – $ 9.9 million range to further enhance its capital base.
The former James Monroe directors are Dr. Terry L. Collins, CEO of Argon ST, Norman P. Horn, CPA, Dr. David C. Karlgaard, Vice Chairman of Nortel Government Solutions, Richard C. Litman, Esquire, Dr. Alvin E. Nashman, and Russell E. Sherman, Esquire.
William G. Dukas, Chairman of the Board of Freedom Bank said, “The new directors and additional capital will significantly advance our strategy for growth as a high quality community bank. James Monroe was a very successful bank and these experienced bank directors were instrumental in creating that success. We welcome them to our Board.”
Richard C. Litman, who will succeed Mr. Dukas as Chairman, commented: “Our group was looking for a growing bank with a solid management team where our experience would provide synergy and where community banking and relationships with customers meant something special. We are very pleased to be joining the Freedom team.”
John Rohrback, Freedom Bank’s President and CEO commented: “The former James Monroe group shares our culture and will provide insight and vision to help us grow.”
“With the new board members and the added capital, the Bank will seek to fill the void left by acquisitions of other community banks. This strategic investment of money and human capital will not only enhance shareholder value, but will help us provide significant benefits for our customers and employees,” Mr. Dukas added.
In addition to all necessary regulatory approval, the transaction is subject to usual and customary closing conditions, and is expected to be completed by early 2007. Wayne M. Lee of Greenberg Traurig, LLP, McLean, VA, acted as legal counsel for Freedom Bank; Philip W. Jaeger of Bean Kinney & Korman, PC, Arlington, VA represented the investors.
This press release contains forward-looking statements. These forward-looking statements include, but are not limited to, statements about (i) the benefits of the transaction; (ii) Freedom’s plans, objectives, expectations and intentions and other statements that are not historical facts; and (iii) other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “targets,” “projects,” or words of similar meaning generally intended to identify forward-looking statements. These forward-looking statements are based on the current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed or implied in these forward- looking statements because of numerous possible uncertainties.
Contact:
John T. Rohrback, 703-242-5300
Freedom Bank of Virginia
Lana Sansur, 703-385-8178 x208
The Borenstein Group, Inc.
TCO 356389171v3 10/17/2006
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