VersaBank Plans Comprehensive Redemption of Preferred Shares
VersaBank Announces Series 1 Preferred Shares Redemption
VersaBank (TSX: VBNK) has officially declared its intention to redeem all outstanding Non-cumulative 5-Year Rate Reset Preferred Shares, Series 1. This decision, which emphasizes the Bank's strategic focus on capital management, will take effect on the designated Redemption Date at a price of $10.00 per share. Shareholders will also receive all declared and unpaid dividends up to this date, ensuring a complete settlement of the preferred shares.
Details of the Redemption Process
The approval for this redemption has come from the Office of the Superintendent of Financial Institutions, indicating its alignment with regulatory standards. The funding for this redemption will be sourced from the Bank's general funds. This move is part of the broader efforts of VersaBank to maintain a robust regulatory capital structure while optimizing its balance sheet.
Dividend Declaration and Payment
On September 4, 2024, the Bank's Board of Directors declared the final quarterly dividends on the Series 1 Preferred Shares, amounting to $0.1693 per share. These dividends will be distributed in the usual manner on the Redemption Date, and shareholders of record will be those noted as of October 4, 2024. It's important to note that after October 31, 2024, these preferred shares will no longer have any rights to dividends.
Instructions for Beneficial Holders
For those beneficial holders of the Series 1 Preferred Shares who are not the direct registered holders, it is recommended to get in touch with the financial institution or broker handling their holdings. They can provide guidance on how to receive the redemption proceeds efficiently. Any inquiries related to the process should be directed to Odyssey Trust Company, the appointed Registrar and Transfer Agent.
About VersaBank
VersaBank is distinguished as a fully chartered North American bank with a unique operational model centered on digital banking. It operates without physical branches, leveraging advanced technology to serve business clients across underserved market segments in a way that mitigates risk effectively. The Bank has successfully entered the U.S. market with its innovative Receivable Purchase Program, which has garnered notable success in Canada over the past 15 years.
Commitment to Cyber Security
In addition, VersaBank has made strides in the realm of cyber security by acquiring DRT Cyber Inc., a leader in providing security solutions that address the growing threats faced by financial institutions and corporate entities. This strategic move enhances the Bank's capacity to fortify its operations against rising cybersecurity challenges.
Investment Opportunities with VersaBank
For those interested in investing, VersaBank's common shares are publicly traded on both the Toronto Stock Exchange and Nasdaq under the symbol VBNK. Additionally, the Series 1 Preferred Shares trade on the TSX under the symbol VBNK.PR.A. This trading setup presents a unique opportunity for investors looking to engage with an innovative banking institution focused on digital transformation.
Frequently Asked Questions
What is the reason behind the redemption of Series 1 Preferred Shares?
The redemption is part of VersaBank's strategy to manage its regulatory capital effectively and optimize its balance sheet.
When will the shareholders receive their redemption proceeds?
Shareholders will receive their proceeds on the Redemption Date, which is scheduled for October 31, 2024.
Who should I contact for questions about my preferred shares?
Beneficial holders should reach out to the financial institution or broker through which they hold their shares for assistance with the redemption process.
What are the final dividends for the Series 1 Preferred Shares?
The final dividends declared are $0.1693 per share, which will be paid on the Redemption Date to shareholders of record on October 4, 2024.
Where can I find more information about VersaBank?
For further information, you can visit VersaBank's official website to learn more about their services and updates.
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