Small Texas Banker Offering Preferred Stock

Small Texas banker and investment services company Tectonic Financial Inc will be selling a $10/share preferred stock offering.

We are not familiar with Tectonic and it appears they are a private company at this point in time. The company was formed in 2004.

The new preferred issue will be a fixed-to-floating rate preferred and will be composed of 1.5 million shares with another 225,000 shares available for over allotments.

Dividends will be paid quarter, the issue will be non-cumulative and will trade on NASDAQ under ticker TECTP.

Pricing and OTC Grey market ticker have not been announced.

Some initial info on the issue can be seen here.

15 thoughts on “Small Texas Banker Offering Preferred Stock”

  1. I got it. Company raising $15 million, of which $8 million is going to go toward buying out the Series A owned a co-chairman and director of the company at an undisclosed price. The Series A has a 10% coupon and is not traded, so its value is rather arbitrary.

    Amazing that this deal would ever come to the public markets.

    1. Coming to market because some Underwriters jump in bed with anybody and anything for a dollar.

    1. David, so does O J Simpson, but I wouldn’t let him babysit my kids…
      Do your OWN due diligence before investing and if you are comfortable with the risk and Ball’s company running your preferred investment, then by all means you have found a new part of your portfolio.
      The four most dangerous words in investing are: ‘This time it’s different.'”
      –Sir John Templeton, investor and mutual-fund pioneer
      Nomad

    2. BTW David, read starting page 21 thru 59 all the fines, censures, civil and administrative penalties etc that Sanders Morris Harris LLC has had on Mr Ball’s watch… (I am only scratching the surface and do not want to disclose more for obvious reasons). https://files.brokercheck.finra.org/firm/firm_20580.pdf
      Again PLEASE do your own deep due diligence investing your hard earned dollars…
      Nomad

      1. No wonder they are raising money. They need to stockpile funds to pay future fines.

  2. Just so everyone know Textonic is not a “normal” bank and I am shocked to see the likes of George L Ball as their Co-Executive Chairman (page 15) https://www.sec.gov/Archives/edgar/data/1766526/000114036119008430/s002654x8_fwp.htm Mr Ball was directly responsible for many large financial firms downfall; especially in the “scam” limited partnership crisis, mail and wire fraud etc. Just look at his track record with EF Hutton and Prudential-Bache; he brought shame to once fine financial firms and I believe bankrupted both firms. Please please please do your OWN deep due diligence before investing ANYTHING Mr Ball touches… https://www.washingtonpost.com/archive/business/1991/02/14/prudential-bache-chief-george-l-ball-resigns/beedc577-d51a-4249-846e-6ab3c539e8cd/?noredirect=on&utm_term=.3479dc6ee40d

    1. ah, was wondering if the management were scammers. Thanks Nomad. Usually, the Bank regulators don’t let these guys back in. Another sign of a bubble in my opinion, sloppy regulators

      1. SteveA, Tectonic may not be a publicly traded company because Mr Ball is on the BOD or is management and the SEC would not allow a 10% holder or a control person that had major past issues like Mr Ball from taking their company IPO public. This is the old T Aquisition Inc that one of my old clients in Texas asked about (need a fiduciary for a large corporate and individual trust) a few years back. When I did the research and saw that Mr Ball was a control person, I told him to run the other way. My belief is that Tectonic has been in “close contact” with the SEC and decided to file a S-1 preferred IPO to raise additional funds because they cannot go common IPO because of Mr Ball’s past “indiscretions”…
        One of my favorite quotes seems appropriate:
        Pure gold does not rust. Only gold alloys do so. You may have golden dreams. But if you go in the company of toxic people, your become “a gold alloy” and what that means is that you can rust at any time!
        Smile, Nomad

        1. “SEC would not allow a 10% holder or a control person that had major past issues like Mr. Ball from taking their company IPO public”.

          That sure meets my definition of sloppy regulation. You cannot issue common stock but you can issue preferred stock. Would not happen on my watch if I were a regulator. LOL – Heaven and markets forbid.

Comments are closed.