Transnational Financial Network Inc. — a San Francisco-based mortgage lender that’s trying to avoid being booted from the American Stock Exchange — says it has an agreement to acquire the mortgage banking division of an unnamed regional bank holding company.

Transnational said it would issue 3 million shares of common stock to close the deal, which would make the unnamed bank one of the company’s largest shareholders. As of June 30, Transnational had 6.8 million shares of common stock outstanding, according to a July 27 Securities and Exchange Commission filing.

“This represents the first of several mergers or acquisitions we anticipate making as part of our strategy to build a $5 billion origination franchise,” said Joseph Kristul, Transnational’s chief executive officer, in a press release. Kristul did not immediately return a call Monday.

In a July 31 letter, the American Stock Exchange notified the company that it no longer met standards for listing because its shareholders’ equity in the company was less than $2 million and the company had experienced losses in two of the last three years. Transnational is required to submit a plan by Aug. 30 that would bring the company into compliance with listing standards within 18 months.

Transnational said at the time that a planned sale of 3 million shares of common stock to Dallas-based Pegasus Funds LLC would allow the company to meet listing standards.

Founded in 1985, Transnational employs 97 people at its retail offices in San Francisco and Campbell, Calif., and wholesale offices in Scottsdale, Ariz., and San Francisco, Costa Mesa and San Ramon, Calif. Transnational posted losses of $1.9 million on $11.2 million in revenue for the year ending April 30, and reported $3.7 million in losses in 2005.

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