Virginia Business Bank Withdraws Common Stock Offering
The Board of Director’s of Virginia Business Bank announced on Tuesday, October 5, 2010 that it has withdrawn its public offering to sell up to $30 million of its common stock because it did not receive enough subscriptions to satisfy the minimum commitment for the offering. Under the terms of the offering, if the Bank did not receive fully paid subscriptions for at least $20 million by September 30, 2010, the offering would be terminated and all subscription funds held in escrow by SunTrust Bank would be returned promptly to participating investors.
According to Mark J. Hourigan, Chairman of the Board, “While we are grateful for the support that we received for our stock offering, challenging market conditions limited our ability to meet the minimum stock subscription commitment by the September 30th deadline.” In making the announcement Hourigan stated that the Board remains committed to exploring all strategic options to protect shareholder value.
Because the offering has been withdrawn, the Bank’s employment agreement with Scott C. Harvard, who was slated to become the Chief Executive Officer of the Bank upon completion of the offering, did not become effective and his existing consulting arrangement with the Bank has ended.
For information about Virginia Business Bank, please visit our website at vabusinessbank.com or contact:
Geoffrey C. Warner
Chief Financial Officer
(804) 523-4400
gwarner@vabusinessbank.com
Beth Blake
Stock Offering Administrator
(804) 523-4427
bblake@vabusinessbank.com