Virginia Commerce Bancorp, Inc. Announces Capital Raise Of $10 Million
Virginia Commerce Bancorp, Inc. (NASDAQ: VCBI) (the “Company”), announced that it has entered into agreements with several institutional investors for a direct placement of $10.0 million of common stock at a price of $5.25 per share. The Company will issue a total of 1,904,766 shares to the institutional investors.
In addition, the Company will issue to the investors two warrants exercisable for shares of common stock, which, if fully exercised, would provide an additional $11.4 million in gross proceeds to the Company. The warrants each have an exercise price of $6.00 per share, which represents a 14.3% premium to the offering price of the shares of common stock sold in the direct placement. The Series A Warrants, exercisable for a total of 952,383 shares of common stock, will be exercisable for a period of seven months following the closing date. The Series B Warrants, also exercisable for a total of 952,383 shares of common stock, will be exercisable for a period of twelve months following the closing date.
The Company anticipates that the additional capital from this investment will be used for general corporate purposes, which may include, without limitation, investments at the holding company level, providing capital to support the Company’s growth, acquisitions or other business combinations, the future repayment of a portion of the Company’s financial commitment in the U.S. Treasury’s TARP Capital Purchase Program, when appropriate and subject to receipt of the necessary approvals, and the continued strengthening of the Company’s balance sheet.
Peter A. Converse, President and Chief Executive Officer, said, “Virginia Commerce Bancorp is pleased to have completed this capital transaction, which is the most recent in a series of capital formation steps taken by our Company over the last several years. This additional capital will support our growth and our continued service to our customers.”
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