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Summary
- StoneCastle Financial (BANX) announced a US$10.8 million registered direct offering for 492,234 common stock shares.
- BANX is an investment company with a US$145.57 million market capitalization.
- Its current dividend yield is 6.94%.
StoneCastle Financial Corp (NASDAQ:BANX) on Monday announced Registered Direct Offering (RDO) of 492,234 common stocks with an expected proceed of US$10,775,000. This amount is excluding the related legal and administrative expenses. Under this agreement, BANX is offering 492,234 common stocks to investors with a purchase price of US$21.89 per share.
StoneCastle is a Fillmore Street, Denver-based Securities and Exchange Commission (SEC) registered non-diversified, closed-ended investment company. The company’s focus is on bank-related investments, including alternative capital securities, community bank and goods & service providers of banks. StoneCastle’s objective is to provide current income to its stockholders as well as a lower extent capital appreciation too.
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Source: Pixabay
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RDA is offered to a select group of investors that are registered with the SEC. However, these RDO being fully registered transactions can be sold to anyone. This is another option for companies to raise capital when traditional public offerings or private placement in public securities are not viable.
BANX’s market capitalization is US$ 145.57 million and a P/E ratio of 5.88. Its current dividend yield is 6.94% and its annualized dividend is US$ 1.52.
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Its IPO came in November 2013.
Its net asset was US$ 142 million at the end of March quarter of 2021 with a net asset value of US$ 21.62, a 0.18% increase from the previous quarter.
BANX’s first fiscal quarter ended March 2021 net investment income was US$ 2.6 million or US$ 0.40 per share.
The company’s total investment was US$ 178 million and cash and other assets totaled up to be US$ 4.5 million as of March 31, 2021. In the March quarter 2021, BANX paid a cash distribution of US$ 0.38 per share.
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It filed a ‘Shelf’ registration statement with the SEC in May this year. For the RDO, the company will have to file the prospectus with the SEC along with the prospectus supplement as part of the effective statement.
The stock rose approximately 31% in one year at the current trading price of US$ 22.07. The share was up 0.82% from the previous close at 3:48 pm ET on July 12.
Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
The reference data in this article has been partly sourced from EODHD/Others.
