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A small Philadelphia-based bank, Republic First (OTC:FRBK) is closing in on a $35M cash infusion from an investor group, as the company is still struggling months after last spring’s banking turmoil, according to a media report.
Republic First (OTC:FRBK), essentially a penny stock, soared 57% to $0.08 in Friday trading.
The bank would get the investment from a group of existing investors led by George Norcross III, Philip Norcross, and Gregory Braca, the Wall Street Journal said, citing people familiar with the matter. In addition, Republic First (OTC:FRBK) is in talks to raise $40M-$65M more from other investors.
The bank had total assets of $6.16B as of March 31, 2023, the last time it reported quarterly earnings. Its total equity, or assets less liabilities, was $116M as of June 30, the WSJ said, citing a Q2 report submitted to banking regulators. That number, though, excluded $304M of unrealized losses on bonds that it classified as “held to maturity.”
In late September, Republic First (OTC:FRBK) had signed a letter of intent with the Norcross Braca group for an investment of at least $35M, contingent on the bank raising at least $40M of additional capital from third-party investors.
The newest deal contemplated with the Norcross Braca group doesn’t hinge on the additional capital raise, the WSJ said. The investor group is expected to get two board seats, with Philip Norcross becoming chair. Braca would be the other representative on the FRBK’s board.
