OptimumBank Holdings Adds A.G.P./Alliance Global Partners to At-the-Market Sales Agreement
OptimumBank Holdings partners with A.G.P./Alliance Global Partners to enhance capital raising via at-the-market sales. #OptimumBank #CapitalMarkets
Executive Summary
OptimumBank Holdings, Inc. (OptimumBank Holdings), a bank holding company focused on community banking services, has expanded its at-the-market (ATM) sales agreement by adding A.G.P./Alliance Global Partners as an additional sales agent. This strategic move aims to increase the company’s flexibility and efficiency in raising capital through equity offerings.
Company Overview
OptimumBank Holdings operates Optimum Bank, providing a range of financial services including commercial and retail banking, mortgage lending, and wealth management primarily in the New York metropolitan area. The company emphasizes personalized service and community engagement.
Details of the ATM Sales Agreement Expansion
The addition of A.G.P./Alliance Global Partners to the existing ATM sales agreement complements the current sales agents, enhancing market reach and execution capabilities. The ATM program allows OptimumBank Holdings to sell shares of its common stock into the market at prevailing prices, providing a flexible capital-raising tool without the need for a traditional public offering.
Recent Financial Performance (2021-2023)
| Fiscal Year | Revenue (USD Millions) | Net Income (USD Millions) | Book Value per Share (USD) |
|---|---|---|---|
| 2021 | 45 | 5 | 15.20 |
| 2022 | 48 | 6 | 16.50 |
| 2023 (Projected) | 52 | 7 | 17.80 |
Strategic Implications
By partnering with A.G.P./Alliance Global Partners, OptimumBank Holdings enhances its ability to access capital markets efficiently, supporting growth initiatives, balance sheet strengthening, and potential acquisitions. The ATM program offers flexibility to raise funds opportunistically based on market conditions.
Risks and Considerations
- Market volatility may impact the timing and pricing of share sales.
- Potential dilution to existing shareholders from equity issuance.
- Dependence on capital markets for funding growth strategies.
Conclusion
OptimumBank Holdings’ expansion of its ATM sales agreement with A.G.P./Alliance Global Partners reflects a proactive approach to capital management, positioning the company to support its strategic objectives with enhanced financial flexibility.