BUSINESS WIRE--WGNB Corp. (NASDAQ:WGNB), the holding company for First National Bank of Georgia, announced today the filing of a registration statement with the Securities and Exchange Commission for a rights offering to the holders of its common stock.
Through the registration statement, WGNB is offering up to $25,000,000 of the Company’s 9% Series A Preferred Stock (“9% Series A Preferred”). Under the terms of the rights offering, common shareholders will receive one non-transferable subscription right to purchase the Company’s 9% Series A Preferred for each share of common stock owned as of the record date. WGNB common shareholders may then purchase one share of the 9% Series A Preferred for $10.00 per each 2.423 subscription rights granted in this offering. A shareholder who fully exercises his or her rights may oversubscribe for additional shares of the 9% Series A Preferred at the same purchase price.
The Board of Directors has elected June 30, 2008 as the record date for the rights offering.
WGNB anticipates that the rights offering will begin in July 2008, subject to the effectiveness of the registration statement filed with the SEC, and will continue for up to thirty days thereafter. WGNB plans to use the proceeds of the rights offering for capital enhancement and general working capital purposes.
The securities are being offered by WGNB and represent new financing for the Company. Shareholders will receive a prospectus and subscription materials in the mail.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The rights offering will only be made by means of a prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.