ArrowMark Financial Corp. (NASDAQ: BANX) Announces the Preliminary Results of its Rights Offering

Rhea-AI Summary

ArrowMark Financial Corp (NASDAQ: BANX) announced preliminary results for its transferable rights offering that ran from Jan 22, 2026 to Feb 18, 2026. Rights holders could subscribe for up to 2,604,156 common shares at $19.79 per share, set at 90% of NAV on the Expiration Date.

Gross proceeds are expected to be approximately $37,000,000. Shares will be issued after receipt of payments and completion of pro-rata allocation of oversubscriptions. The Fund intends to invest net proceeds per its investment objectives and policies.

Positive

• Gross proceeds expected to be approximately $37,000,000
• Subscription price set at $19.79, equal to 90% of NAV
• Rights offering allows existing holders pro-rata participation

Negative

• Potential share dilution from issuance of 2,604,156 common shares
• Final allocation depends on pro-rata process and oversubscription outcomes

Key Figures

Maximum rights shares: 2,604,156 shares Par value per share: $0.001 Subscription price: $19.79 per share +4 more

7 metrics

Maximum rights shares 2,604,156 shares Common shares offered in the rights offering

Par value per share $0.001 Par value of BANX common shares

Subscription price $19.79 per share Rights offering subscription price

Pricing vs NAV 90% of NAV Subscription price set as percentage of NAV on Expiration Date

Gross proceeds $37,000,000 Expected gross proceeds from the rights offering

Offer commencement January 22, 2026 Start date of the rights offering

Expiration Date February 18, 2026 Rights offering Expiration Date

Market Reality Check

Price: $19.83 Vol: Volume 179,269 is 3.28x t...

high vol

$19.83 Last Close

Volume Volume 179,269 is 3.28x the 20-day average of 54,647, indicating elevated trading interest ahead of the offering update. high

Technical BANX at $19.83 is trading below its 200-day MA of $21.10 and about 16.22% under its 52-week high.

Peers on Argus

Peer closed-end funds show mixed, mostly modest moves (from about -4.33% to +1.3...

Peer closed-end funds show mixed, mostly modest moves (from about -4.33% to +1.33%), while BANX trades down 1.2% with heavy volume, pointing to stock-specific dilution effects from the rights offering.

Previous Offering Reports

2 past events · Latest: Jan 13 (Negative)

Same Type Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Jan 13	Rights offering terms	Negative	-4.8%	Announced structure and pricing formula for transferable rights offering.
Dec 18	Direct equity offering	Positive	+0.3%	Registered direct sale of common shares at a slight premium to NAV.

Pattern Detected

Offering-related announcements have produced an average move of about -2.23%, suggesting equity raises tend to pressure BANX shares around these events.

Recent Company History

In the past few months, BANX has focused on capital-raising and income distribution. A December 2025 registered direct offering at $22.28 per share raised roughly $15M. In January 2026, the fund outlined a transferable rights offering structure, later detailed in SEC filings. Alongside these, BANX has maintained monthly cash distributions and reported NAV estimates near the low $22 area. Today’s preliminary rights-offering results reflect execution of that previously announced capital-raise strategy.

Historical Comparison

-2.2% avg move · Past offering-related announcements for BANX produced an average move of -2.23%. This preliminary ri...

offering

-2.2%

Average Historical Move offering

Past offering-related announcements for BANX produced an average move of -2.23%. This preliminary rights-offering result fits into the same pattern of capital raises that have modestly pressured or only slightly lifted the stock.

BANX moved from a December 2025 registered direct offering to announcing rights-offering terms in January 2026, now reaching preliminary results for the fully subscribed rights issue.

Market Pulse Summary

This announcement details preliminary results for BANX’s transferable rights offering, including a s...

Analysis

This announcement details preliminary results for BANX’s transferable rights offering, including a subscription price of $19.79 per share and expected gross proceeds of about $37M. It follows earlier disclosures of the offering’s terms and objectives. Investors may track how efficiently the fund invests these proceeds within its banking-focused mandate and monitor future NAV updates and distribution coverage to gauge the impact of this capital raise.

Key Terms

transferable rights offering, subscription price, net asset value, oversubscription privilege, +1 more

5 terms

transferable rights offering financial

"announced the preliminary results of its transferable rights offering (the “Offer”)."

A transferable rights offering is a company raising money by giving existing shareholders tradable tokens called “rights” that let them buy new shares at a set price. Think of it like a coupon that shareholders can either use to buy discounted stock, sell to someone else, or let expire; it matters to investors because exercising preserves ownership percentage while selling can provide cash, and the overall offering can dilute share value for those who do nothing.

subscription price financial

"The subscription price was $19.79 per Common Share and was determined based upon 90% of the Fund’s net asset value"

Subscription price is the set amount an investor pays to buy newly issued shares, bonds or units when a company offers them directly, such as in a rights issue or subscription offering. It matters because it determines how much an investor’s ownership cost will be, affects potential gains or losses and influences dilution of existing shareholders—think of it as a pre-order price that helps decide whether joining the new issue is worthwhile.

net asset value financial

"determined based upon 90% of the Fund’s net asset value per Common Share at the close of trading"

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

oversubscription privilege financial

"completion of the pro-rata allocation of Common Shares in respect of the oversubscription privilege."

An oversubscription privilege is an option offered to existing shareholders during a rights offering that lets them request extra shares beyond their initial allotment if other shareholders don’t take theirs. Think of it like being allowed to buy extra concert tickets if some fans return theirs; it gives investors a chance to maintain or increase their ownership, avoid dilution, and potentially buy shares at a set price before the wider market can.

prospectus regulatory

"This document is not an offering, which can only be made by a prospectus."

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

AI-generated analysis. Not financial advice.

DENVER, Feb. 19, 2026 (GLOBE NEWSWIRE) -- ArrowMark Financial Corp. (NASDAQ: BANX) (the “Fund”) announced the preliminary results of its transferable rights offering (the “Offer”). The Offer commenced on January 22, 2026, and expired on February 18, 2026 (the “Expiration Date”).  The Offer entitled rights holders to subscribe for up to an aggregate of 2,604,156 of the Fund’s shares of common stock, par value $0.001 per share (“Common Shares”). The subscription price was $19.79 per Common Share and was determined based upon 90% of the Fund’s net asset value per Common Share at the close of trading on the NASDAQ Global Select Market on the Expiration Date. Common Shares will be issued promptly after receipt of all shareholder payments and completion of the pro-rata allocation of Common Shares in respect of the oversubscription privilege.

Gross proceeds of the Offer are expected to be approximately $37,000,000. The Fund intends to invest the net proceeds of the Offer in accordance with its investment objectives and policies.

This document is not an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a prospectus. Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. Such information, including other information about the Fund, can be found on file with the Securities and Exchange Commission and should be read carefully before investing.

About ArrowMark Financial Corp. 

ArrowMark Financial Corp. is an SEC registered non-diversified, closed-end fund listed on the NASDAQ Global Select Market under the symbol “BANX.” Its investment objective is to provide shareholders with current income. The Fund pursues its objective by investing primarily in regulatory capital securities of financial institutions. ArrowMark Financial is managed by ArrowMark Asset Management, LLC. To learn more, visit ir.arrowmarkfinancialcorp.com or contact the Fund’s secondary market service agent at 877-855-3434.

For information about the Fund, please contact your financial advisor.

Contact:

BANX@destracapital.com
Destra Capital Advisors LLC
(877) 855-3434

NOT FDIC INSURED	NO BANK GUARANTEE	MAY LOSE VALUE

FAQ

What were the dates and terms of ArrowMark Financial (BANX) rights offering in February 2026?

The Offer ran from Jan 22, 2026 to Feb 18, 2026, allowing subscription for up to 2,604,156 shares at $19.79 per share. According to the company, the price was set at 90% of NAV on the Expiration Date.

How much money did ArrowMark (BANX) expect to raise from the rights offering?

Gross proceeds were expected to be approximately $37,000,000. According to the company, net proceeds will be invested in accordance with its stated investment objectives and policies after offering completion.

What is the subscription price formula used for BANX rights offering on Feb 18, 2026?

The subscription price was $19.79 per share, equal to 90% of the Fund’s net asset value per share. According to the company, that NAV was calculated at market close on the Expiration Date, Feb 18, 2026.

Will BANX issue shares immediately after the rights offering expired on Feb 18, 2026?

Shares will be issued promptly after receipt of all shareholder payments and completion of pro-rata allocation. According to the company, issuance timing depends on payment receipt and oversubscription allocation procedures.

How does the BANX rights offering affect existing shareholders?

Existing rights holders could subscribe pro-rata, preserving ownership rights if they participated. According to the company, unsubscribed rights could lead to share issuance that may dilute non-participating shareholders.