SIOUX FALLS, S.D., Oct. 1, 2012 /PRNewswire/ -- Meta Financial Group, Inc. ® (the "Company") (NASDAQ: CASH) today announced that it has completed its previously announced transactions in which the Company has sold, on September 28, 2012, to investors an aggregate of 1,563,100 shares of the Company's common stock, for total consideration of approximately $34.2 million. The price per share, $21.91, was determined by averaging the daily volume weighted average price of the Company's common stock for a trading period preceding the signing of the purchase agreements.
At least 90% of the proceeds will be used to further capitalize MetaBank, the Company's wholly owned subsidiary, and will qualify as tangible common equity and Tier 1 capital at September 30, 2012. The shares were sold in order to support expected significant growth in MetaBank's Meta Payment Systems' programs. The remainder of the proceeds will be used by the Company for general corporate purposes.
The shares were sold to an affiliate of Altamont Capital Partners, affiliates of Philadelphia Financial Management of San Francisco, LLC, and NetSpend Holdings, Inc. (NASDAQ: NTSP), each of which is an existing stockholder of the Company; an affiliate of Brookside Equity Partners LLC; an affiliate of JTH Holding Inc. (NASDAQ: TAX), parent of Liberty Tax Service; affiliates of Weintraub Capital Management, L.P.; affiliates of Harvest Capital Strategies LLC; and other institutional and individual investors.
The closing of these private placement transactions was consummated following stockholder approval of an amendment to the Company's Certificate of Incorporation to, among other things, increase the number of authorized shares of common stock to 10.0 million from 5.2 million and increase the number of authorized preferred shares to 3.0 million from 0.8 million, as well as stockholder approval of the private placement transactions as required under NASDAQ Stock Market Rules.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV