Following the Rights Offering in Jacksonville Bancorp, Inc. JAXB

Jacksonville Bancorp (JAXB) is in the midst of a rights offering that I’m interested in following. The document describing the offering can be found here.

One reason I’m interested in this offering is that it has similar characteristics to an offering we followed a short time ago in EVBS. The EVBS rights offering, and subsequent move in the stock, resulted in a very nice return.

Here are the basic terms:

• The rights are exercisable at $.50, where the stock is trading now.
• The company is hoping to raise ~$4.5 million assuming all rights are exercised.
• The company did a private placement raising ~$45 million last December.
• The rights expire Sept. 20, 2013 if not exercised.

I’ll be digging into this one in the next few days to determine whether I would take a position in the common prior to the rights expiration on Sept. 20, 2013. If I get involved it will be through purchasing the common stock, as the date for owning the stock and actually getting rights has passed.