VersaBank Announces Redemption of Series 1 Preferred Shares
VersaBank (TSX: VBNK) has announced its plan to redeem all of its outstanding Non-cumulative 5-Year Rate Reset Preferred Shares, Series 1. This move, aimed at enhancing the Bank's approach to capital management, will become effective on the specified Redemption Date at a price of $10.00 per share. In addition to this payment, shareholders will receive all declared and unpaid dividends up to the Redemption Date, ensuring a complete and final settlement of the preferred shares.
Redemption Process Details
The redemption has received the necessary approval from the Office of the Superintendent of Financial Institutions, confirming its compliance with regulatory requirements. The funds for this redemption will be drawn from the Bank's general resources. This initiative is part of VersaBank's ongoing efforts to maintain a solid regulatory capital framework while optimizing its overall balance sheet.
Dividend Declaration and Payment Schedule
On September 4, 2024, the Bank's Board of Directors confirmed the final quarterly dividend for the Series 1 Preferred Shares, set at $0.1693 per share. These dividends will be disbursed as scheduled on the Redemption Date. Shareholders eligible for this dividend will be those recorded as of October 4, 2024. Keep in mind that after October 31, 2024, the preferred shares will cease to have any entitlement to dividends.
Instructions for Beneficial Holders
Beneficial holders of the Series 1 Preferred Shares who are not directly registered should contact the financial institution or broker managing their shares. They can provide assistance with receiving the redemption proceeds. For any questions related to the process, please reach out to Odyssey Trust Company, the designated Registrar and Transfer Agent.
About VersaBank
VersaBank stands out as a fully chartered bank in North America, operating on a unique model that emphasizes digital banking. Without physical branches, it utilizes cutting-edge technology to effectively serve business clients in underserved markets while managing risks. The Bank has successfully expanded into the U.S. market with its Receivable Purchase Program, which has achieved remarkable success in Canada over the last 15 years.
Focus on Cyber Security
Moreover, VersaBank is enhancing its commitment to cyber security by acquiring DRT Cyber Inc., a company renowned for providing security solutions tailored to combat the increasing threats financial institutions and corporate entities face. This strategic acquisition strengthens the Bank's ability to protect its operations against rising cyber challenges.
Investment Opportunities with VersaBank
If you're interested in investing, you'll find that VersaBank's common shares are available for trading on both the Toronto Stock Exchange and Nasdaq under the symbol VBNK. Furthermore, the Series 1 Preferred Shares can be traded on the TSX under the symbol VBNK.PR.A. This trading environment offers a distinctive chance for investors keen on partnering with a forward-thinking banking institution committed to digital advancement.
Frequently Asked Questions
What prompted the redemption of Series 1 Preferred Shares?
The redemption is aligned with VersaBank's strategy to effectively manage its regulatory capital and optimize its balance sheet.
When can shareholders expect to receive their redemption proceeds?
Shareholders will receive their proceeds on the Redemption Date, which is set for October 31, 2024.
Who should I contact for questions regarding my preferred shares?
Beneficial holders are advised to connect with the financial institution or broker managing their shares for help with the redemption process.
What are the amounts for the final dividends on the Series 1 Preferred Shares?
The declared final dividends are $0.1693 per share, which will be paid out on the Redemption Date to shareholders noted on October 4, 2024.
Where can I get more information about VersaBank?
For additional details, you can visit VersaBank's official website to learn about their services and latest updates.
