The deal to infuse much needed new capital into 1st Mariner Bank got a new deadline Thursday when the bank’s parent company and the private equity firm it is partnered with extended the deal until Nov. 30.
First Mariner Bancorp had missed a pair of deadlines in its effort to raise more than $123 million, which would have allowed Priam Capital Fund LP to walk away from the deal on Oct. 16.
But Howard Feinglass, the Baltimore native who is Priam’s managing partner, said again that the firm remains committed to the deal and that the extension buys more time to raise the capital.
“We are continuing to work with Priam Capital and our advisors to complete our recapitalization efforts,” said First Mariner CEO Edwin F. Hale Sr. “Extending our agreement was a necessary step in that process.”
Priam Capital Fund I LP agreed in April to pump $36.4 million into First Mariner — if the bank could raise an additional $123.6 million. Priam is allowed to terminate the deal if certain goals aren’t met.
First Mariner was to have raised $70.6 million by July 18, but didn’t meet that deadline. The company was to have raised the entire $123.6 million by Thursday. The deadlines were voluntary, as is a third to have the deal closed by Oct. 16.
This month also saw First Mariner stock delisted from Nasdaq. The company’s shares now trade on the Over The Counter Bulletin Board stock market. The stock was delisted for failing to trade at more than $1 per share.
First Mariner shares lost 3 cents, or 12 percent, Thursday to close at 22 cents.