Monarch Financial
Holdings, Inc. (Nasdaq: MNRK), parent of Monarch Bank, announced that
effective on June 30, 2008, it had sold $2.1 million of common stock in the
second closing of a private placement in which it sold a total of 774,110
shares of common stock with gross proceeds of $7.2 million in additional
equity capital. The first closing of the private placement was announced on
June 10, 2008. In this placement, accredited investors purchased 704,309
shares at $9.25 per share, a discount to current market price to reflect the
restrictions placed on the newly issued shares, and members of the corporate
board of directors and senior management purchased 69,801 shares at $9.90 per
share, the closing price of the Company's common stock on June 6, 2008, which,
in accordance with NASDAQ guidelines on purchases by company insiders, is
considered to be the market value of purchased shares. Monarch sold the
private placement to local investors, institutional investors, board members,
and members of management.