Hampton Roads Bankshares, Inc. (HMPR: Quote), the holding company for The Bank of Hampton Roads and Shore Bank, said Monday that it will undertake a capital raise of at least $80 million, but no more than $95 million through the sale of its common stock in a private placement and a public rights offering.
The company said that the purpose of the capital raise is to satisfy all regulatory capital requirements and provide significant additional capital.
The company said it has entered into a definitive agreement with its three largest shareholders -- Carlyle Financial Services Harbor, L.P. , ACMO-HR, L.L.C. and CapGen Capital Group VI LP -- to purchase an aggregate of $50 million of its common stock at $0.70 per share in a private placement expected to close in June.
Following the closing of the first $50 million in the private placement, the company plans to conduct a $45 million public rights offering that will allow its shareholders other than the largest shareholders to purchase up to, but no more than, their full pro-rata portion of the total $95 million capital raise at $0.70 per share.
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by RTT Staff Writer
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