Virginia Commerce Bancorp, Inc. Announces Capital Raise of $10 Million
24 September 2010 - 2:55PM
Business Wire
Virginia Commerce Bancorp, Inc. (NASDAQ: VCBI) (the “Company”),
announced that it has entered into agreements with several
institutional investors for a direct placement of $10.0 million of
common stock at a price of $5.25 per share. The Company will issue
a total of 1,904,766 shares to the institutional investors.
In addition, the Company will issue to the investors two
warrants exercisable for shares of common stock, which, if fully
exercised, would provide an additional $11.4 million in gross
proceeds to the Company. The warrants each have an exercise price
of $6.00 per share, which represents a 14.3% premium to the
offering price of the shares of common stock sold in the direct
placement. The Series A Warrants, exercisable for a total of
952,383 shares of common stock, will be exercisable for a period of
seven months following the closing date. The Series B Warrants,
also exercisable for a total of 952,383 shares of common stock,
will be exercisable for a period of twelve months following the
closing date.
The Company anticipates that the additional capital from this
investment will be used for general corporate purposes, which may
include, without limitation, investments at the holding company
level, providing capital to support the Company’s growth,
acquisitions or other business combinations, the future repayment
of a portion of the Company’s financial commitment in the U.S.
Treasury’s TARP Capital Purchase Program, when appropriate and
subject to receipt of the necessary approvals, and the continued
strengthening of the Company’s balance sheet.
Peter A. Converse, President and Chief Executive Officer, said,
“Virginia Commerce Bancorp is pleased to have completed this
capital transaction, which is the most recent in a series of
capital formation steps taken by our Company over the last several
years. This additional capital will support our growth and our
continued service to our customers.”
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw
Capital Group, Inc. (NASDAQ: RODM), acted as the exclusive
placement agent for the transaction.
The securities described above are being offered pursuant to a
registration statement previously filed with and declared effective
by the Securities and Exchange Commission (“SEC”). This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy any of the securities described herein, nor
shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. When filed with
the SEC, copies of the prospectus supplement and the accompanying
base prospectus relating to this offering may be obtained at the
SEC’s website at http://www.sec.gov or by request at
info@rodm.com.
ABOUT VIRGINIA COMMERCE
BANCORP, INC.
Virginia Commerce Bancorp, Inc. is the parent bank holding
company for Virginia Commerce Bank (the “Bank”), a Virginia state
chartered bank that commenced operations in May 1988. The Bank
pursues a traditional community banking strategy, offering a full
range of business and consumer banking services through
twenty-eight branch offices, one residential mortgage office and
one Wealth Management Services office, principally to individuals
and small-to-medium size businesses in Northern Virginia and the
Metropolitan Washington, D.C. area.
FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements within
the meaning of the Securities and Exchange Act of 1934, as amended,
including statements of goals, intentions, level of capital and
expectations as to future trends, plans, events or results of
Company operations and policies, including, without limitation,
possible gross proceeds from future exercise of the warrants and
the use of proceeds. When we use words such as “may,” “will,”
“anticipates,” “believes,” “expects,” “plans,” “estimates,”
“potential,” “continue,” “should,” and similar words or phrases,
you should consider them as identifying forward-looking statements,
which are not guarantees of future performance. These statements
are based upon current and anticipated economic conditions,
nationally and in the Company’s market, interest rates and interest
rate policy, competitive factors, and other conditions which by
their nature, are not susceptible to accurate forecast, and are
subject to significant uncertainty. Because of these uncertainties
and the assumptions on which this release and the forward-looking
statements are based, actual future operations and results may
differ materially from those indicated herein. Readers are
cautioned against placing undue reliance on any such
forward-looking statements. The Company’s past results are not
necessarily indicative of future performance.
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