Proceeds from sales of common shares for further capitalizing MetaBank
By Marisa Wong
Madison, Wis., Aug. 20 - Meta Financial Group, Inc. said it entered into nine separate purchase agreements on Aug. 16 to raise a total of about $34.2 million.
Meta Financial has agreed to sell a total of roughly 1.56 million shares of common stock at $21.91 per share. The price per share is based on the volume-weighted average prices of the company's stock over a recent 20-day trading period.
Investors include an affiliate of Altamont Capital Partners, affiliates of Philadelphia Financial Management of San Francisco, LLC and NetSpend Holdings, Inc., each of which is an existing stockholder of the company; an affiliate of Brookside Equity Partners LLC; an affiliate of JTH Holding Inc., parent of Liberty Tax Service; affiliates of Weintraub Capital Management, LP; affiliates of Harvest Capital Strategies LLC; and other institutional and individual investors.
The company said it will invest at least 90% of the net proceeds to further capitalize wholly owned subsidiary MetaBank, which will qualify as tangible common equity and tier 1 capital. The remainder of the funds will be used for general corporate purposes.
Closing of the transactions are subject to certain customary conditions and to shareholder approval. A special meeting of stockholders is scheduled for late September.
Meta Financial is the holding company for MetaBank and is based in Sioux Falls, S.D.
| Issuer: | Meta Financial Group, Inc.
|
| Issue: | Common stock
|
| Amount: | $34.2 million (approximate)
|
| Shares: | 1.56 million (approximate)
|
| Price: | $21.91
|
| Warrants: | No
|
| Investors: | Affiliate of Altamont Capital Partners, affiliates of Philadelphia Financial Management of San Francisco, LLC and NetSpend Holdings, Inc., each an existing stockholder; affiliate of Brookside Equity Partners LLC; affiliate of JTH Holding Inc.; affiliates of Weintraub Capital Management, LP; affiliates of Harvest Capital Strategies LLC; other institutional and individual investors
|
| Announcement date: | Aug. 20
|
| Stock symbol: | Nasdaq: CASH
|
| Stock price: | $23.52 at close Aug. 17
|
| Market capitalization: | $89.86 million
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