Business
Patriot National Bancorp and American Challenger Development Corp. agree to merge and create largest digital challenger bank in America
Combination will create a purpose-driven, digital-first national bank offering better rates and a premium customer experience Patriot enters into separate
About this update from Patriot National Bancorp Inc.
[{"type":"text","content":"Combination will create a purpose-driven, digital-first national bank offering better rates and a premium customer experience Patriot enters into separate agreements with investors to provide $540 million as part of its $890 million merger recapitalization STAMFORD, Conn., Nov. 15, 2021 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (“Patriot” (NASDAQ: PNBK)), the parent company of Patriot Bank, N.A. (the “Bank”), and American Challenger Development Corp. ( “American Challenger”), announced today that they have entered into a definitive agreement (the “Merger Agreement”) under which Patriot will acquire American Challenger via a reverse subsidiary merger, with American Challenger surviving as a wholly owned subsidiary of Patriot (the \"Merger\"). Pursuant to the terms of the Merger Agreement, at the effective time of the Merger, American Challenger common stockholders will receive shares of Patriot common stock as consideration and American Challenger preferred stockholders will receive cash. The Merger will create a purpose-driven, digital-first national bank with highly efficient operations to generate industry leading financial performance and a technology driven banking experience that will offer competitive rates and a premium customer experience. Patriot also announced today that it has entered into separate definitive agreements (the “Investment Agreements”) with certain investors, consisting of a private placement in an aggregate principal amount of approximately $540 million of newly issued Patriot voting and non-voting common stock priced at $17.69 per share, warrants for the purchase of non-voting common stock of Patriot, and preferred stock of Patriot Bank. Patriot intends to raise an additional principal amount of at least $350 million, for a total capital raise of at least $890 million, and intends to negotiate and enter into definitive agreements with other investors for the purchase of subordinated debt securities and preferred stock of Patriot in addition to further sales of Patriot common stock and warrants for the purchase of Patriot non-voting common stock (collectively, the \"Recapitalization,\" and together with the Merger, the “Proposed Transactions”). Pursuant to the terms and conditions of the Investment Agreements and the Merger Agreement, the Recapitalization and the Merger will be completed on the...