Shares of Common Stock will be issued promptly after completion and receipt of all stockholder payments and the pro-rata allocation of Common Stock in respect of the oversubscription privilege
. Gross proceeds of the Offer are expected to be approximately $231M.
This was approximately 9.2% of the total number of shares requested pursuant to holders' oversubscription privilege
In addition each shareholder was entitled to an oversubscription privilege
up to a limit of three times their basic subscription right.
The rights offering includes an oversubscription privilege
which permits each rights holder that exercises its rights in full to purchase additional shares of common stock that remain unsubscribed at the expiration of the offering.
Also, for those qualified stockholders exercising their basic subscription right in full, such stockholder may also choose to exercise an oversubscription privilege
to purchase a portion of any shares that other qualified stockholders do not purchase through the exercise of their basic subscription rights.
The company said that all 31,240,472 shares, subject to subscription rights, were sold pursuant to the basic subscription privilege and the oversubscription privilege
described in the prospectus.
The rights offering also includes an oversubscription privilege
Additionally, stockholders who fully exercise all their issued rights will be entitled to subscribe for additional shares at the subscription price under an oversubscription privilege
. If shares are insufficient to honour the requests, the available shares will be allocated pro rata among those stockholders who oversubscribe, based on the number of rights issued initially to them.
Pursuant to the Offering, the remaining 18% of the Series C Preferred shares were allocated according to the terms of the oversubscription privilege
. Approximately 1.72 million Series B Preferred shares with a liquidation value of $50.00 per share, or approximately $86 million, were surrendered by subscribing shareholders to acquire Series C Preferred shares.
As part of the rights offering, 9,248,464 shares were issued to holders upon exercise of their basic subscription privilege (including 2,625,000 shares issued to Lehman), and 1,376,536 shares were issued to holders upon exercise of their oversubscription privilege
, which was approximately 9.2 percent of the total number of shares requested pursuant to holders' oversubscription privilege
Farmers National Banc Corporation (OTCBB: FMNB), the Canfield, Ohio-based holding company for The Farmers National Bank, has said that 2,058,315 common shares have been subscribed for in its rights offering, and that all basic subscription rights and oversubscription privileges
have been accepted.
As a result, the remaining shares available for issuance to those rights holders validly exercising oversubscription privileges
will be allocated pro rata based on the number of rights underlying such rights holders' basic subscription privilege, Liberty added.