Deal Collapses with Republic First Over $35 Million Investment
Republic First Bank, a financial institution based in the United States, has faced a significant setback in its efforts to secure much-needed capital. The bank was delisted from Nasdaq in early 2023 after failing to file its 2022 10-K, or annual report, with the Securities and Exchange Commission.
In a turn of events, the Norcross-Braca Group, a prominent investment group, had agreed to inject $35 million into Republic First Bank back in October 2022. However, the investment deal has been called off following the bank's failure to meet the terms of the agreement.
The initial deadline for the completion of the investment was set for Nov. 30, but it was extended to Feb. 29 in November. Alongside this, a scheduled shareholder meeting for Dec. 19 was also postponed during the same month. George Norcross, one of the investors, confirmed in November that the $35 million was fully funded into an escrow account.
The closing conditions for the investment included Republic First filing its 2022 10-K and scheduling a required shareholder meeting, both of which were not met. As a result, the Norcross-Braca Group decided to withdraw their investment.
In an effort to catch up on its annual and periodic financial reporting obligations, Republic First Bank has hired Wolf & Company as its new auditor for 2022, 2023, and 2024. This move is crucial for the bank's potential growth capital in the future.
Republic First Bank is still seeking to raise between $75 million and $100 million in capital. The group that attempted to increase the bank's share capital to this extent in December 2022 remains unidentified in the provided search results.
The bank has faced challenges in its financial filings and audits, with Crowe, its former auditor, informing Republic First of "material weaknesses in internal control over financial reporting" in December 2022. This week, Republic First dismissed Crowe and hired Wolf & Company as its new auditor.
Despite these challenges, Republic First Bank maintains a strong deposit base and ample liquidity, allowing its employees to continue delivering exceptional service to customers. In a recent 8-K filing, the bank stated that it can maintain its operations without the $35 million investment from the Norcross-Braca Group.
As of the article's publication, a spokesperson for the Norcross-Braca Group had no further comment on the matter. The group has been engaged in a proxy fight with Republic First since spring 2022.
