Blue Ridge Bankshares, Inc. (NYSE: BRBS) shares slide Friday, on entering into definitive securities purchase agreements to issue gross proceeds of $ 150,000,000 of Blue Ridge's common stock. The Private Placement is subject to customary closing conditions including required regulatory and shareholder approvals.
Pursuant to the agreements, the Company will issue 60 million new common shares at a price of $2.50 per share, and approximately 29.4 million warrants to purchase common stock of Blue Ridge with a strike price equal to $2.50 per share.
The Private Placement is being led by Kenneth R. Lehman, a private investor with many years of experience investing in banks, with participation from Castle Creek Capital Partners VIII L.P. other new and existing institutional investors, and Blue Ridge directors and officers.
Upon consummation of the Private Placement, Lehman will own approximately 25% of Blue Ridge's pro forma outstanding common stock and Castle Creek will own approximately 12.5%. No new investors other than Lehman and Castle Creek will own in excess of 9.9% of the common equity of the pro forma Company.
Following the closing of the Private Placement, the Company, Lehman and Castle Creek plan to identify certain criticized assets and develop an Asset Resolution Plan. The Asset Resolution Plan will provide a work-out strategy for identified assets for subsequent disposition, work-out, upgrade, or other resolution.
BRBS shares dropped 12 cents, or 3.4%, to $3.42.
