ANNISTON, AL (February 8, 2017) – Southern States Bancshares, Inc., parent company of Southern States Bank, entered into a stock purchase agreement with several accredited institutional investors and additionally sold shares of common stock to accredited local investors. In aggregate, proceeds of approximately $44.6 million in common stock was raised and a new series nonvoting mandatorily convertible noncumulative preferred stock.
Southern States Bancshares, Inc. plans to use the net proceeds to repay its existing credit facility, to pursue and fund mergers and acquisitions and for other general corporate purposes. “We are extremely happy with the successful completion of the institutional and retail capital raise, “said Steve Whatley, Chairman, CEO and President of Southern Sates Bank. “We believe this new capital will provide us with the necessary growth to achieve our long term strategic vision.”
Patriot Financial Partners, through its affiliated investment funds Patriot Financial Partners II, L.P. and Patriot Financial Partners Parallel II, L.P., is the lead investor which includes both voting common shares and series B preferred stock. The preferred stock will convert to nonvoting common shares upon the authorization of such securities by existing shareholders, which will be sought by Southern States Bank at its next shareholder meeting. Patriot Financial Partners will be entitled to have one representative appointed to the board of Southern States Bancshares Inc. and Southern States Bank. Mr. Jim Lynch, founding partner of Patriot Financial Partners, has joined the Southern States Bank board of directors to serve in this position.
SunTrust Robinson Humphrey served as sole placement agent for the institutional private placement offering. In connection with the transaction, Mike Waters of Jones Walker acted as legal counsel to Southern States Bancshares, Inc., while Troutman Sanders LLP acted as legal counsel to Patriot.