VersaBank Secures Additional Capital Through Exercise of Over-Allotment Option

Versabank ( (TSE:VBNK) ) has provided an announcement.

VersaBank announced the successful exercise of the over-allotment option in its public offering, resulting in the sale of an additional 849,056 common shares at US$13.25 each, raising an extra US$11.25 million. The total shares sold in the offering increased to 6.5 million, with gross proceeds reaching US$86.25 million. These funds are expected to enhance VersaBank’s Common Equity Tier 1 capital for general banking purposes, potentially strengthening its market position.

More about Versabank

VersaBank is a North American bank, federally chartered in both Canada and the United States, operating a branchless, digital, business-to-business model. It utilizes proprietary technology to efficiently serve underserved segments of the banking industry. The bank focuses on obtaining deposits and conducting lending electronically, resulting in significant operating leverage. VersaBank’s Receivable Purchase Program was launched in the U.S. in March 2022, targeting the point-of-sale finance market. The bank also owns DRT Cyber Inc., a leader in cybersecurity services.

YTD Price Performance: 22.54%

Average Trading Volume: 89,278

Technical Sentiment Consensus Rating: Sell

Current Market Cap: $345.6M

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