The preferred pays 10% and adjust upwards later. I hope this is the insiders' scheme to line their pockets.If so, the abuse is abhor. Otherwise, the bank had to be in serious trouble. All sign indicated that this is not the case.
Tiny part of the mystery: << On January 19, 2010, Central Valley Community Bancorp (Company) received confirmation from the U. S. Treasury (Treasury) of the reduction in the number of shares of Common Stock issuable upon the exercise of a Warrant issued to the Treasury (Warrant). The Warrant was issued in connection with a Letter Agreement (Agreement), entered into on January 30, 2009, between the Company and the Treasury whereby the Company issued to the Treasury a Warrant to purchase 158,133 shares of the Company’s common stock, no par value. After the adjustment, the number of shares of Common Stock issuable pursuant to the Treasury’s exercise of the Warrant was reduced to 79,067. According to the Agreement, if the Company received aggregate gross cash proceeds of not less than $7,000,000 for a Qualified Equity Offering on or prior to December 31, 2009, the number of shares of Common Stock issuable upon the exercise of the Warrant could be reduced by one half of the original number of shares. The Company raised $8,000,000 in a Qualified Equity Offering on December 23, 2009 and exercised its option to cancel one half of the Common Stock issuable under the Warrants. >>
However, for every $100 in new capital it issued 16 new shares at 13% discount to tangible book value, but only get's to reduce one warrant.