Hampton Roads Bankshares Announces Commencement Of $40 Million Common Stock Rights Offering
NORFOLK, Va., Nov. 15, 2010 (GLOBE NEWSWIRE) -- Hampton Roads Bankshares, Inc. (Nasdaq:HMPR) (the "Company"), the holding company for Bank of Hampton Roads and Shore Bank, today announced that it had commenced a $40 million common stock rights offering (the "Rights Offering"). Shareholders who owned common shares of the Company at the close of business on September 29, 2010, including those holders of Series A and B preferred shares of the Company who tendered such shares in exchange offers required to be conducted under the terms of the agreements governing the Company's $255 million private placement of common stock (the "Private Placement"), will receive at no charge a non-transferable right to purchase newly-issued common shares in the Rights Offering.
The Company will issue up to 100,000,000 common shares in the Rights Offering at a price of $0.40 per share, the same price paid by the institutional investors participating in the Private Placement. Eligible shareholders may exercise the rights to purchase 2.2698 newly-issued shares for each common share owned. To the extent that some eligible shareholders do not participate in the Rights Offering, or choose to purchase less than their full allocation of shares, the remaining shares will be available for purchase by other eligible shareholders.
The Rights Offering will expire at 5:00 p.m. Eastern time on December 10, 2010. In the event that the Rights Offering is not fully subscribed, institutional investors participating in the Private Placement have agreed to purchase those shares of common stock not purchased in the Rights Offering, provided that certain conditions are met.On September 30, 2010, the Company closed on $235 million of the Private Placement. The Company expects to close on the remaining $20 million of the Private Placement and issue an additional 50,000,000 common shares promptly following the closing of the Rights Offering and before the end of the fourth quarter.
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