Blue Ridge Bankshares Announces $150 Million Private Placement
Blue Ridge Bankshares experiences a decline in stock value after announcing a $150 million private placement. The private placement is led by private investor Kenneth Lehman.
Blue Ridge Bankshares' stock experienced a decline in value following the company's decision to issue $150 million worth of shares in a private placement. The stock fell 12% in premarket trading to $3.12, down from yesterday's closing price of $3.54. Year-to-date, shares have seen a significant decrease of 72%.
On Friday, Blue Ridge Bank holding company confirmed the signing of definitive securities purchase agreements for the issuance of 60 million shares at a price of $2.50 each, along with approximately 29.4 million warrants to purchase shares at a strike price of $2.50.
Notably, the private placement is being led by private investor Kenneth Lehman, accompanied by Castle Creek Capital Partners, Blue Ridge directors and officers, and other institutional investors. Upon completion of the deal, Lehman will become the owner of approximately 25% of the company's outstanding stock, while Castle Creek will possess approximately 12.5%. Additionally, Lehman and Castle Creek intend to identify assets for disposition or improvement. Furthermore, the bank plans to welcome up to three new investors to its board.
With this infusion of capital, Blue Ridge aims to undertake several near-term strategic initiatives, such as repositioning business lines and bolstering the capital levels of its core community bank.
For more information, contact Dean Seal.