Bay National to issue up to $12M in stock - East Bay Business Times:

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Since February, the bank has been operatin under a consent agreemeng with federal regulators that requires it to boosyt its reserves as part of a turnaround plan that also includee resolving problem real estate loans on its Bay National, (NASDAQ: which regulators consider “adequately has posted six consecutive quarterly losses. The bank has struggledf over the past 18 months asa once-promising initiative to write mortgages for customerx interested in buying and rehabbing residentialk properties in hot Baltimore neighborhoods like Federao Hill and Canton tanked in a tumbling real estate market.
Some customerse had a hard time repaying their loans as the value of their properties and the bank has been busy trying to reworkthosre loans. “We had some very difficult but we feel the wors t of that is behind Hugh W. Mohler, Bay National’s CEO, told shareholders “Our future is bright,” Mohler added. “We need to raisre some capital and take it from The bank has hired LLCof Va. to advise it on the private placemenft ofthe shares, which will be offered at $2 The thinly traded sharesz have been as low as 52 cent and as high as $9.2t5 over the past 52 weeks.
In their last which was on Friday, the shares sold for Earlier this month, Bay National announced it lost $884,000, or 41 centx a share, for the first quartet of the year, an improvement from the $1.49 or 69 cents a share, it lost in the first threer monthsof 2008. Shareholders on Tuesday also approveed boostingthe company’s number of shares outstanding to 20 milliom from the current 9 million and reelected all five directorse who were up for 3-year terms includint Mohler, R. Michael Gill, Donald G. McClurr Jr., Robert L. Moore and H. Victor Rieger Jr. Shareholderxs also ratified the appointment ofStegman Co. as the company’sw auditors.