ES Bancshares Inc., the holding company of Empire State Bank in Newburgh reached a board decision to modify the terms of its 327,690 outstanding common stock purchase warrants and 190,000 organizer warrants to purchase company common stock.
“We are excited to offer our warrant holders an opportunity to purchase additional stock at a reduced price,” said Anthony Costa, chairman and CEO of the bank. “The main reason for raising additional capital is to allow the bank to continue to grow at a managed pace and add new branch locations.”
Added capital will allow Empire State Bank to continue growing in a safe manner when other financial institutions are taking losses on loans and other investments, according to Costa.
The company reduced the exercise price of the common stock warrants from $10 to $6.75 until Oct. 31, 2008. The company also announced it reduced the exercise price of 190,000 organizer warrants from $10 to $6.75 for a period also ending Oct. 31.
The organizer warrants were granted to 19 organizers in connection with the opening of Empire State Bank, as “they were responsible for forming the bank and continue to be supporters,” said Phil Guarnieri, president and chief operating officer.
Empire Bank is a commercial bank founded in 2004. In addition to its headquarters in Newburgh, it operates a branch on Staten Island and in New Paltz. For information, visit www.esbna.com.
