Heritage Bankshares, Inc. Announces Private Placement
05 Julio 2006 - 11:13AM
PR Newswire (US)
NORFOLK, Va., July 5 /PRNewswire-FirstCall/ -- Heritage Bankshares,
Inc. ("Heritage") (Pinksheets: HBKS) announced that on June 30,
2006 it completed the initial closing under a sale of up to 200,000
shares of its common stock in a private placement to directors and
executive officers. The price per share in the offering is $15.50,
which was recommended by a special committee made up of directors
who will not take part in the offering. The initial closing
involved the sale of 138,505 of the 200,000 shares. Subscriptions
for the remaining shares will be closed on July 31. According to
Michael S. Ives, President and CEO of Heritage, the purpose of the
offering is to raise capital to sustain the expansion plans of the
corporation's subsidiary, Heritage Bank. "We are close to beginning
construction of two branches in Virginia Beach, one in the
Lynnhaven area and one at Hilltop, and to commencing the process of
relocating our downtown Norfolk branch to the Trader Building,"
Ives said. "The additional capital also allows the Bank to increase
our loan limits. We are committed to both retaining our
well-capitalized rating and continuing to grow. This offering
provides a near-term solution. We continue to assess our capital
needs from time to time and will respond accordingly." The shares
are being sold as "restricted securities," and have not been
registered under federal or state security laws. They may be resold
only if the shares are subsequently registered with the Securities
and Exchange Commission or an exemption from registration exists.
The most commonly used exemption for resale requires that the
shares be held for one year before trading and places volume and
dollar restrictions on the amount that can be sold after the one
year period. "Heritage Bankshares already has over 1.7 million
registered shares outstanding in the hands of the public," said
Peter M. Meredith, Jr., Heritage's chairman. "The directors and
executive officers were a logical source of funding for our
near-term needs. They automatically qualify as buyers in a private
offering and are both willing and able to abide with restrictions
on resale. We are gratified by the confidence shown in their
response to the offering." This news release is not an offer to
sell or the solicitation of an offer to buy any shares of common
stock of Heritage. About Heritage Heritage is the parent company of
Heritage Bank. Heritage Bank has four full-service branches in the
City of Norfolk and one full-service branch in the City of Virginia
Beach. Heritage Bank provides a full range of financial services
including business, personal and mortgage loans. Forward Looking
Statements The press release contains statements that constitute
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause Heritage's actual
results, performance, achievements, and business strategy to differ
materially from those anticipated. Forward looking statements often
contain a word such as "expect," believe," "estimate" or
"anticipate." Factors that could cause such actual results,
performance, achievements and business strategy to differ
materially from those anticipated include: discovery of further
accounting errors, general and local economic conditions,
competition, capital requirements of the bank's announced expansion
plans, customer demand for Heritage's banking products and
services, and the risks and uncertainties described in Heritage's
Form 10-KSB filed with the Securities and Exchange Commission.
Heritage disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise. DATASOURCE: Heritage
Bankshares, Inc. CONTACT: John O. Guthrie of Heritage Bankshares,
Inc., +1-757-523-2600 Web site: http://www.heritagebankva.com/
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