Hampton Roads Bankshares Announces Completion Of Rights Offering And Second Closing Of Private Placement
Private Placement and Rights Offering Raise $295 Million in Capital Company and Subsidiary Banks "Well-Capitalized" Under Applicable Regulatory Requirements
NORFOLK, Va., Dec. 29, 2010 (GLOBE NEWSWIRE) -- Hampton Roads Bankshares, Inc. (Nasdaq:HMPR) (the "Company"), the holding company for Bank of Hampton Roads and Shore Bank, today announced the completion of a $40 million common stock rights offering (the "Rights Offering"), which expired at 5:00 p.m., Eastern Time, on December 10, 2010. The Company also announced the second and final closing of a private placement of its common stock with institutional investors (the "Private Placement"), in which the Company raised an additional $20 million on December 28, 2010. On September 30, 2010, in the first closing of the Private Placement, the Company sold $235 million worth of its common stock to institutional investors.
In the Rights Offering, the Company offered 100 million shares of common stock at a price of $0.40 per share to existing holders of its common shares as of the close of business on September 29, 2010, including holders of the Company's Series A and B preferred shares who tendered such shares in exchange offers required to be conducted by the agreements governing the Private Placement (the "Investment Agreements"). Eligible shareholders who elected to participate in the Rights Offering purchased 24.4 million shares. Pursuant to the Investment Agreements, institutional investors participating in the Private Placement honored their backstop commitments to purchase at the same price per share the remaining 75.6 million shares not purchased by shareholders eligible to participate in the Rights Offering.The Private Placement and Rights Offering raised a total of $295 million in new capital before offering expenses through the sale of 737.5 million shares of common stock at $0.40 per share. As of September 30, 2010, the Company, Bank of Hampton Roads and Shore Bank were "well-capitalized" under applicable banking regulations and the Company expects all entities to remain "well-capitalized" at December 31, 2010.
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