MainStreet Bancshares Reports Successful Capital Raise

Fairfax, VA — MainStreet Bancshares, Inc. (OTCQB: MNSB), the holding company for MainStreet Bank, completed an over-subscribed common equity capital raise on October 24, 2017.

A total of one million one hundred fifty thousand (1,150,000) shares of common stock were issued and sold at $16.00 per share in a private placement for a total of $18.4 million.  This issuance of additional shares of common stock is accretive to the company’s current book value.

The proceeds from the placement will be used to facilitate strategic initiatives, support the company’s organic growth and market expansion activities, and for general corporate purposes.  The company placed the common stock with accredited investors from the communities the bank serves as well as existing institutional investors.

QUOTES: “We’re experiencing phenomenal growth at MainStreet.  This new capital will support our continued growth opportunities as we strive to enhance value for our shareholders,” said Chairman and CEO Jeff W. Dick.  “The Washington, DC metropolitan area remains vibrant with diverse opportunities for good conservative growth.”

“This capital raise is a vote of confidence from the market – especially since the offering was over-subscribed beyond what we offered.” said Chris Brockett, MainStreet’s President.  “We proudly welcome our new shareholders to the MNSB family and appreciate the confidence they have shown in our team.”

FinPro Capital Advisors, Inc. served as the sole placement agent for the private placement. MainStreet Bancshares, Inc. was advised by the law firm of Jones Walker LLP.  The common shares sold in the private placement are not registered under the Securities Act of 1933 or the securities laws of any other state or other jurisdiction and were issued pursuant to exemptions from registration.

ABOUT MAINSTREET BANK:   MainStreet operates five branches in Herndon, Fairfax, Fairfax City, McLean and Clarendon, with a sixth branch coming soon to Leesburg Virginia.  In addition, MainStreet has 55,000 free ATMs and a fully integrated online and mobile banking solution.  The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office®. With robust and easy-to-use online business banking technology, MainStreet has literally “put our bank” in over 1,000 businesses in the Metropolitan area.

MainStreet has a full complement of payment system services for third party payment providers.  MainStreet has a nationally known and leading market expert on-staff ready to help payment providers create a solution perfect for their needs.

MainStreet has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction and commercial real estate.  MainStreet also works with the SBA to offer 7A and 504 lending solutions.  From mobile banking and Apple Pay to instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve its customer experience.  Additionally, MainStreet released Aircharity® in 2012. Aircharity® is a unique solution that empowers people and organizations to raise money via email, websites and social media.  The product allows a customer to open an account and accept donations from debit cards, credit cards and electronic checks.

MainStreet Bank was the first community bank in the Washington, DC Metropolitan area to offer a full online business banking solution.  MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides multi-million-dollar FDIC insurance.  Further information on the Bank can be obtained by visiting its website at mstreetbank.com.

 

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This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties.  Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Other risks that can affect the Bank are detailed from time to time in our annual reports.  We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made.  In addition, our past results of operations are not necessarily indicative of future performance. 


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