Investment Banking - Grand River

Transactions | Banking

Client: Grand River
Industry: Banking
Transaction Type: Common Stock Offering
Role: Sole Placement Agent

  • Grand River Commerce, Inc. (OTCQB: GNRV) is the holding company for Grandville, Michigan-based Grand River Bank.
  • As of December 31, 2014, the company had $130 million in assets.  The bank is primarily engaged in providing a full range of banking and financial services to individual and corporate customers in Greater Grand Rapids.
  • The company completed a private placement of 2,367,508 shares of newly issued common stock at a price of $4.50 per share.
  • GNRV generated gross proceeds of $10.7 million from the offering.
  • The Grand Rapids economy is very strong and the company intends to use the net proceeds of the offering to help fully implement its growth strategy. Additionally, several locally-based community banks have recently sold or announced plans to sell, which management believes will create even greater opportunities for a well-capitalized community bank in their market.
  • The offering was also structured to preserve a meaningful deferred tax asset in excess of $2.0 million.
  • The offering was sold to a mixture of local accredited and marquee institutional investors.
  • Boenning acted as sole placement agent in connection with the offering.