The company has yet to set a share price for the new stock.

Shares of Guaranty Financial Group fell 80 cents, or 13.4 percent, to $5.17. Earlier in the session, shares hit a 52-week low of $5.01. Shares have traded between $5.80 and $16.78 over the past year.

In a regulatory filing with the Securities and Exchange Commission, Guaranty Financial Group said its board has yet to decide how to spend the new capital. In the interim any new capital raised will be invested in short-term securities.

Guaranty Financial Group said in a statement it has reached deals with certain, unnamed investors, to provide a backstop if not all shares of common stock are purchased during the offering.

A prospectus on the deal is expected to be sent to current shareholders around June 2. No timetable for the actual sale of the new stock has been released.