LONDON, ON - VersaBank (NASDAQ: VBNK) (TSX: VBNK) announced today that it has finalized its public offering of common shares, raising gross proceeds of approximately $75 million USD. The offering, which was priced at $13.25 USD per share, resulted in the sale of 5,660,378 common shares. The stock, currently trading at $13.54, has shown mixed performance with a 28% gain over the past six months despite a recent 17% decline in the past week. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.
The bank has also provided underwriters with an over-allotment option, exercisable until January 15, 2025, which could increase the total shares sold by an additional 15%. The net proceeds from the offering are intended for general banking purposes and are expected to qualify as Common Equity Tier 1 capital. With a market capitalization of $353 million and a P/E ratio of 13.2, InvestingPro data reveals the company has maintained profitability over the last twelve months, though it faces some cash flow challenges. Subscribers can access 8 additional ProTips and comprehensive financial metrics through the Pro Research Report.
Raymond (NS:RYMD) James & Associates, Inc. served as the sole bookrunning manager for the offering, with Keefe, Bruyette & Woods, A Stifel Company, and Roth Canada, Inc. acting as co-managers.
The shares were offered via a prospectus supplement to the Bank's short form base shelf prospectus, which is available on SEDAR+ and EDGAR. VersaBank, a North American bank with a branchless, digital, business-to-business model, has highlighted that the offering will support its banking operations.
The bank's statement also included forward-looking information regarding the use of proceeds, but cautioned that these statements are subject to risks and uncertainties that could affect the bank's operations and financial results.
This news release is not an offer to sell or a solicitation of an offer to buy securities, and there will be no sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful.
All financial figures are presented in Canadian dollars, with the conversion based on the daily average exchange rate reported by the Bank of Canada as of December 17, 2024. This article is based on a press release statement from VersaBank.
In other recent news, VersaBank has initiated a public offering of its common shares, with Raymond James & Associates appointed as the sole bookrunning manager. The anticipated net proceeds are expected to qualify as Common Equity Tier 1 capital, boosting the bank's financial position. In addition, VersaBank recently reported a challenging fiscal quarter due to increased expenses from its U.S. bank acquisition. Despite this, analysts from Keefe, Bruyette & Woods maintain an Outperform rating, predicting improved performance as the bank expands its U.S. operations.
VersaBank's acquisition of Stearns Bank Holdingsford has broadened its reach, now federally chartered in both the U.S. and Canada. This strategic move is backed by Roth/MKM, which initiated coverage of the bank's stock with a Buy rating. As a result of these developments, the bank's total assets have reached $4.5 billion, with an 11% year-over-year increase in its loan portfolio, and positive net income and EPS growth for the first nine months of the year. Analysts forecast EPS to reach $1.63 in FY2025, highlighting VersaBank's ongoing growth strategy.
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