Blue Ridge Bankshares Announce $150 Mln Private Placement, Stock Down In Pre-market

(RTTNews) - Blue Ridge Bankshares, Inc. (BRBS) Friday announced that it has entered into a definitive securities purchase agreement to issue gross proceeds of $150 million of its common stock.

Currently, Blue Ridge shares are trading at $2.55, down 27.80% in pre-market activity.

The proceeds from the private placement are intended to reposition business lines, support organic growth, and further enhance the core community bank's capital levels, including complying with the bank's previously disclosed individual minimum capital ratios, as per the company.

Blue Ridge will issue 60 million new shares for $2.50 per share, and around 29.4 million warrants at a strike price equal to $2.50 per share.

The private placement will be led by Kenneth Lehman, a private investor along with participation from Castle Creek Capital Partners VIII L.P, including new and existing institutional investors, and Blue Ridge directors and officers.

Upon completion of the private placement, Lehman will own approximately 25 percent of the common stock and Castle Creek will own around 12.5 percent. No new investor except for Lehman and Castle Creek can own more than 9.9 percent of the common shares.

Following the private placement closing, up to three new investor-appointed representatives are expected to join the Board of Directors of Blue Ridge and Blue Ridge Bank.