MIDLOTHIAN, Va., Aug. 28, 2012 (GLOBE NEWSWIRE) -- Bank of Virginia (the "Bank") (Nasdaq:BOVA) ( www.bankofva.com ) announced today that its largest shareholder, Cordia Bancorp Inc., has invested an additional $3 million in the Bank. The Bank plans to offer its other existing shareholders the right to invest up to $2 million on the same terms. The Bank also entered into an Agreement and Plan of Share Exchange with Cordia Bancorp pursuant to which each share of the Bank's common stock held by persons other than Cordia Bancorp would be exchanged for shares of Cordia Bancorp common stock. As a result, the Bank would become a wholly-owned subsidiary of Cordia Bancorp.
"Completion of the capital raise will improve Bank of Virginia's well-capitalized status and support additional loan growth," said Jack Zoeller, President and CEO of Cordia Bancorp and Chairman and CEO of the Bank. "Reorganizing the Bank as a wholly owned subsidiary of Cordia is an essential element of the transaction. It will put the Bank into a better structure to facilitate future capital raises as well as potential future acquisitions of financial institutions. By combining the shareholders of the Bank and the shareholders of Cordia Bancorp, all of our investors will hold their investments in the same entity."
Under the terms of a Stock Purchase Agreement between Cordia Bancorp and the Bank, Cordia Bancorp purchased 4,166,667 shares of common stock of the Bank at the price of $0.72 per share.The Bank plans to raise up to an additional $2 million by issuing up to 2,798,882 common shares in a public rights offering that it expects to begin in the third quarter of 2012. In the rights offering, the Bank will grant to each of its shareholders other than Cordia Bancorp non-transferable rights to purchase .61489 of a share of common stock for each share held.