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UCFC Provides Details of Stock Rights Offering
YOUNGSTOWN, Ohio – United Community Financial Corp., holding company of the Home Savings and Loan Co., Monday provided more details of the rights offering of up to $5 million it would extend to existing shareholders.
UCFC announced the offering Jan. 15 as part of its plan to raise $47 million in new capital.
Under its terms, all shareholders of record as of March 21 will receive, at no charge, the right to acquire 0.055 share for each common share they hold that date. Rights holders will be given the opportunity to purchase shares in excess of their basic subscription rights subject to availability, UCFC said.
Final terms will be announced and the rights offering will commence as soon as practicable after the filing with, and review by, the U.S. Securities and Exchange Commission of the registration statement related to the offering.
In announcing its intent to raise $47 million in new capital at $2.75 per common share, UCFC set aside $5 million in new shares for existing shareholders. Some $39.9 million in new shares would be offered to private investors and $2.1 million in shares to directors, officers, consultants and affiliates of the company.
Should the plan to raise capital be approved, the 32.9 million common shares would grow by 29% to more than 42 million shares. If all current shareholders exercised their rights, they could buy
nearly 1.81 million shares, which translates to roughly $5 million.
Trading in UCFC shares closed at $3.65 Monday, up seven cents, on a volume of 73,220.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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