Republic First Bancorp in preliminary talks with shareholders to raise capital

Republic First Bancorp

29/08/2023 23:14

Aug 29 (Reuters) - Republic First Bancorp  FRBK.PK  is
in talks with a group led by activist investor George Norcross
regarding an equity investment and a broader capital raise,
according to a regulatory filing on Tuesday.
    Although discussions are still preliminary, Norcross expects
that such a transaction could provide for the resolution of
pending litigation involving the bank, he said in the filing.
    The company last week saw its shares getting delisted from
the Nasdaq after it failed to file its annual report with the
securities regulator for the fiscal year 2022. It now expects
its common stock to begin trading on the over-the-counter
marketplace.
    The company may apply to list on a major exchange after it
files all delayed reports and meets other listing requirements.
    Norcross also said he expect the transaction would provide
for changes to the Philadelphia-based bank's governance
arrangements, including board representation by Norcorss Barca
Group, and could include reimbursement of certain expenses of
the group.
    The regional lender was reeling with higher costs and
inability to improve profitability that prompted it to cut jobs
and exit its mortgage origination business earlier in the year. 

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Maju Samuel)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))