Deal also includes series A and series B warrants for 852,000 shares
By Devika Patel
Knoxville, Tenn., March 21 - Virginia Commerce Bancorp, Inc. plans a $2.5 million registered direct offering of stock, according to a prospectus supplement filed Monday with the Securities and Exchange Commission.
The company will sell 426,000 common shares at $5.87 apiece, which is the consolidated closing bid price of the stock on March 18, plus $0.25. The price per share also represents a 3.89% premium to the March 18 closing share price of $5.65.
The investors will also receive two warrants, which are each exercisable at $5.62. The strike price is a 0.53% discount to the March 18 closing share price and also equal to the consolidated closing bid price of the stock on March 18.
The series A warrants will be exercisable for 426,000 shares for seven months. The series B warrants, also exercisable for 426,000 shares, will be exercisable for one year.
Proceeds will be used for general corporate purposes.
Based in Arlington, Va., Virginia Commerce is the parent bank holding company of Virginia Commerce Bank.
| Issuer: | Virginia Commerce Bancorp, Inc.
|
| Issue: | Common shares
|
| Amount: | $2.5 million
|
| Shares: | 426,000
|
| Price: | $5.87
|
| Warrants: | For 852,000 shares
|
| Warrant expiration: | Seven months (series A), one year (series B)
|
| Warrant strike price: | $5.62
|
| Pricing date: | March 21
|
| Stock symbol: | Nasdaq: VCBI
|
| Stock price: | $5.76 at close March 21
|
| Market capitalization: | $166.77 million
|
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