MIDLOTHIAN, Va., April 10, 2014 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (Nasdaq:BVA), parent company of Bank of Virginia, today announced the closing of a $15.4 million capital raise through the sale of convertible preferred stock to institutional and individual investors. All of Cordia's directors as well as its senior executive officers invested in the offering. The capital will be used primarily to support organic and strategic growth at Bank of Virginia.
"Today's transaction will roughly double the equity capital of Cordia and position Bank of Virginia for a significant new phase of growth," said Jack Zoeller, the President & Chief Executive Officer of Cordia. "We anticipate continuing the expansion of our commercial and consumer lending, which grew last year by 22%, and strengthening our footprint in Greater Richmond, including two new full-service branches in Chesterfield County and Colonial Heights in the near future."
The preferred stock will convert mandatorily into voting and nonvoting common stock upon approval by Cordia's shareholders, which will be sought at its upcoming annual meeting. Under the transaction agreements, Cordia has 120 days after the closing of the offering to obtain the required shareholder approvals, which will automatically trigger the conversion of the preferred stock into common stock. The conversion price will be $4.25 per BVA common share. The number of new BVA common shares to be issued upon conversion would be 3,629,871.The 30-day trailing average closing price for BVA common stock on NASDAQ is $4.28 per share.