Blue Ridge Bankshares, Inc. (NYSE: BRBS) experienced a notable surge in its market performance during the regular trading session on Thursday, with a remarkable 7.25% increase, culminating in shares closing at $2.96. This significant uptick in BRBS stock price closely followed the announcement of its equity maneuver.
Here's Your FREE Report on the #1 Small-Cap Uranium Stock of '24.
Small-cap Uranium stocks are booming in 2024! The company we're about to show you is the ONLY small-cap stock in the space that benefits from ALL aspects of the global Uranium industry with none of the risks of running a mine. Smart investors will not be hesitating on this one!
Get the FREE Report with all the details here.
Sponsored
Blue Ridge (BRBS) announced that it has successfully concluded definitive securities purchase agreements with the parent company of Blue Ridge Bank, National Association (“Blue Ridge Bank”) and BRB Financial Group, Inc. (“BRB Financial Group”). These agreements resulted in gross proceeds of $150 million through a private placement of Blue Ridge’s common and preferred stock.
The previously announced $150 million acquisition, offering, and sale of Blue Ridge common shares on December 22, 2023 is superseded and replaced by this Private Placement since all closing requirements were not satisfied at that time. Blue Ridge plans to utilize the raised capital to drive its immediate strategic objectives, which encompass the repositioning of business lines, bolstering organic growth, and fortifying the core community bank’s capital levels.
This includes adhering to the capital ratios outlined in the Consent Order issued by the Office of the Comptroller of the Currency to Blue Ridge Bank. Despite nearing the fulfillment of the requisite closing conditions for the Previous Transaction, Blue Ridge encountered a shareholder inquiry that cast doubt on the tabulation of votes by an external party regarding the articles amendment proposal during the shareholders meeting.
This complication impeded progress in a timely manner, prompting BRBS to adjust the offering structure as the optimal course of action. In accordance with the securities purchase agreements, Blue Ridge has issued 3.4 million new common shares at a price of $2.50 per share, 14,150 shares of convertible Series B or Series C preferred stock, and 7,383 warrants for purchasing convertible Series B or Series C preferred stock of Blue Ridge.
Blue Ridge common stock is represented by 4,000 shares of convertible Series B and Series C preferred stock per share. Following the completion of the Private Placement, Blue Ridge anticipates appointing up to three new investor-appointed representatives to the Board of Directors of Blue Ridge and Blue Ridge Bank, pending regulatory approval. This will result in the total downsizing of the Blue Ridge Board to 13 members upon the conclusion of Blue Ridge’s 2024 annual meeting of shareholders.
