VersaBank Moves to Redeem Series 1 Preferred Shares Successfully
VersaBank Plans Series 1 Preferred Shares Redemption
Today, VersaBank (TSX: VBNK) announced its decision to redeem all outstanding Non-cumulative 5-Year Rate Reset Preferred Shares, Series 1. This strategic move demonstrates the Bank's ongoing efforts to manage its capital effectively. The redemption price will be set at $10.00 per share, including declared but unpaid dividends until the Redemption Date.
Regulatory Approval Secured for Redemption
The redemption has received clearance from the Office of the Superintendent of Financial Institutions, ensuring compliance with regulatory standards. Financing for this process will come from the Bank's general funds, highlighting its solid financial standing. This decision is seen as part of a broader strategy by VersaBank to enhance its regulatory capital structure.
Final Dividends for Series 1 Preferred Shares
On an earlier date, the Board of Directors declared quarterly dividends of $0.1693 per Series 1 Preferred Share. Shareholders can expect this to be the final dividend distributed on these shares, which will be paid out on the redemption date. After the redemption, holders of Series 1 Preferred Shares will not be entitled to any further dividends; their rights will solely be to receive the redemption amount.
Guidance for Beneficial Holders
Investors who hold Series 1 Preferred Shares through financial institutions or intermediaries should reach out to confirm how they will receive their redemption proceeds. For any inquiries, they can contact Odyssey Trust Company at 1-888-290-1175, which serves as the registrar and transfer agent for the Bank.
Understanding VersaBank's Unique Model
VersaBank operates under a distinctive branchless, digital business model, serving the North American banking sector. With an innovative approach, the Bank leverages advanced technology to cater to underserved markets while maintaining a rigorous risk management strategy. This allows VersaBank to profitably engage in lending and deposit-taking through electronic channels.
New Developments and Growth Strategies
Recently, VersaBank rolled out the Receivable Purchase Program (RPP), targeting the point-of-sale finance sector. This initiative, successful in Canada for a significant period, is now addressing the broader multi-trillion-dollar market in the U.S. Furthermore, VersaBank's acquisition of DRT Cyber Inc. enhances its capacity to offer cybersecurity services, vital in combating increasing cyber threats affecting various sectors.
Trading and Market Position
VersaBank's Common Shares are publicly traded on the Toronto Stock Exchange (TSX) and Nasdaq under the ticker VBNK. Additionally, the Series 1 Preferred Shares are available on TSX marked as VBNK.PR.A. These securities reflect the Bank's commitment to providing value to its investors while navigating the complexities of the current financial landscape.
Connect with VersaBank
For more details on VersaBank and its operations, visit their official website. The Bank encourages engagement through various social media platforms such as Facebook, Instagram, LinkedIn, and X, further expanding its outreach to customers and investors alike.
Frequently Asked Questions
What is the purpose of the Series 1 Preferred Shares redemption?
The redemption aims to manage the bank's regulatory capital effectively while complying with financial regulations.
How can shareholders receive their redemption proceeds?
Shareholders should contact their financial institution or intermediary to confirm how they will receive their proceeds.
What are the final dividend payments for the Series 1 Preferred Shares?
The last dividend declared is $0.1693, payable on the same date as the redemption.
How does VersaBank differentiate itself in the banking industry?
VersaBank operates on a branchless model, focusing on digital solutions and serving underserved segments through advanced technology.
What recent initiatives has VersaBank launched?
VersaBank introduced the Receivable Purchase Program, expanding into the U.S. market to serve point-of-sale finance companies.
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