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MIDLOTHIAN, Va., Oct. 3, 2012 (GLOBE NEWSWIRE) -- Bank of Virginia (the "Bank") (Nasdaq:BOVA) (
www.bankofva.com ), today announced a 1-for-5 reverse stock split of its shares of common stock, which will be effected just prior to market open on October 4, 2012. The reverse stock split was previously approved by the Bank's shareholders at the Annual Meeting of Shareholders held on June 28, 2012.
As a result of the reverse stock split, every five shares of common stock issued and outstanding prior to the opening of trading on October 4, 2012 will be consolidated into one issued and outstanding share. The reverse stock split reduces the number of issued and outstanding shares of common stock from 15,494,849 shares to 3,098,970 shares. No fractional shares of common stock will be issued as a result of the reverse stock split, and any fractional shares will be paid in cash. Proportional adjustments will be made to the Bank's outstanding stock options. The Bank's authorized shares will remain unchanged.
The reverse stock split is intended to increase the per share trading price of the Bank's shares of common stock to satisfy the $1.00 minimum bid price requirement for continued listing on the NASDAQ Capital Market. As previously announced, in order to maintain the Bank's listing on NASDAQ, on or before October 29, 2012, the Bank's common stock must have a closing bid price of $1.00 or more for a minimum of 10 consecutive trading days prior to October 29, 2012. There can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of the Bank's common stock prior to October 29, 2012, to meet this requirement.
Trading of the Bank's shares of common stock on the NASDAQ Capital Market will continue, on a split-adjusted basis, with the opening of the markets on Thursday, October 4, 2012, under new CUSIP number 06544P 203. The Bank's shares will continue to trade on the Nasdaq Capital Market under the symbol "BOVA".