Mackinac in Michigan Raises $11.6 Million

Mackinac Financial (MFNC) in Manistique, Mich., has raised roughly $11.6 million through a rights offering and the sale of common stock to an investor.

Steinhardt Capital Investors purchased almost 922,800 shares of common stock for $5.3 million, the $524 million-asset company said Tuesday. Steinhardt is now the company's largest shareholder with a roughly 18.5% stake in the company and a representative from it will take a seat on Mackinac's board.

Mackinac, the parent company of mBank, also completed in July a $7 million rights offering, which was oversubscribed.

The company announced in late March that it would raise up to $18 million through the rights offering and the investment from Steinhardt, which had agreed to purchase between $5 million and $11 million of the bank's securities. Mackinac will use the capital for strategic initiatives, including possibly repaying the $11 million it received from the Troubled Asset Relief Program in April 2009.