PVF Capital Corp. Announces Completion of Trust Preferred Securities Exchange
March 17 2010 - 8:15AM
PVF Capital Corp. (Nasdaq:PVFC) announced today that it has
completed the acquisition of its outstanding trust preferred
securities with an aggregate liquidation amount of $10.0 million in
exchange for $400,000 in cash, common stock valued at $600,000 and
warrants to acquire common stock.
Pursuant to the exchange, which was approved by stockholders at
the Company's January 29, 2010 annual meeting of stockholders, PVF
Capital Corp. issued a total of 280,241 shares of common stock,
which was determined by dividing $600,000 by $2.14, the average
daily closing price of the common stock over the 20 trading days
prior to the closing of the transaction. The Company also issued
warrants to purchase 797,347 shares of common stock. In
addition, the investors received warrants that become exercisable
in the event PVF Capital Corp. completes one or more public or
private offerings of its common stock within a year, including the
Company's previously announced rights offering and related offering
to a standby purchaser. The additional warrants will give the
holders the right to acquire additional shares of common stock so
that the total number of shares they could acquire under all
warrants would entitle them to purchase an aggregate of 4.9% of the
Company's common stock outstanding, following the offering or
offerings completed during that one-year period.
The exchange is expected to generate after tax income of
approximately $6.0 million. The income will be recorded during
the quarter ending March 31, 2010.
PVF Capital Corp. is the holding company for Park View Federal
Savings Bank, headquartered in Solon, Ohio, serving the Greater
Cleveland area with 17 full-service branch offices.
This press release contains statements that are forward-looking,
as that term is defined by the Private Securities Litigation Act of
1995 or the Securities and Exchange Commission in its rules,
regulations and releases. The Company intends that such
forward-looking statements be subject to the safe harbors created
thereby. All forward-looking statements are based on current
expectation regarding important risk factors including, but not
limited to, real estate values, the impact of interest rates on
financing, the Company's continuing ability to fully utilize its
net operating loss carryforwards and the risk factors set forth in
Item 1A of the Company's Annual Report on Form 10-K for the year
ended June 30, 2009 and Forms 10-Q for the quarters ended September
30, 2009 and December 31, 2009. Accordingly, actual results may
differ from those expressed in the forward-looking statements, and
the making of such statements should not be regarded as a
representation by the Company or any other person that results
expressed therein will be achieved.
CONTACT: PVF Capital Corp.
Robert J. King, Jr.
440.248.7171
robert.king@pvfsb.com
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