NORTH GARDEN, Va., Jan. 10, 2013 (GLOBE NEWSWIRE) -- Old Dominion National Bank (the ''Bank") is pleased to announce that it has entered into a Stock Purchase Agreement (the "Agreement") with a private investor, Wesley Yuan, pursuant to which Mr. Yuan has agreed to purchase a significant amount of equity in the Bank. In connection with the Agreement, the Bank expects to commence an equity offering of between $7 million and $12 million, which will be conducted as a private placement to designated outside investors and will be exempt from the registration requirements of the OCC. Under the Agreement, Mr. Yuan has agreed to purchase shares in the offering if the Bank reaches at least $7 million (including Mr. Yuan's investment) in the private placement. Mr. Yuan's purchase also is subject to the approval of the Comptroller of the Currency and the Virginia Bureau of Financial Institutions, as well as other customary closing conditions. As a condition of the Agreement, Mr. Yuan is also expected to be appointed as a Director of the Bank, and he will be able to designate a majority of the Board.
Subject to the conditions above, the offering is expected to close by March 31, 2013, or early in the second quarter of 2013.
"This capital raise, if successful, will enable the Bank to continue to grow as an independent community institution, increase its lending limit, and allow it to take full advantage of the opportunities offered to it in the Charlottesville market and elsewhere," Charles Darnell, the Bank's President and CEO said.
The Bank also expects that if the capital raise described above is successful, it will conduct a rights offering to its current shareholders to give them the opportunity to purchase additional shares, up to 10% of the number sold in the private placement, at the same price as Mr. Yuan's investment.
This press release is for information purposes only, and is not an offer to sell or the solicitation of an offer to buy any securities of the Bank. The capital raise described above will be made only to designated persons in a private offering, exempt from the registration requirements of the OCC. These have not been and will not be registered with the OCC and may not be offered or sold in the United States absent registration or an application exemption from registration requirements. The rights offering will be offered only by means of a prospectus that has been filed with the OCC as part of a registration statement on Form S-1. The Bank will not sell any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its Directors or its officers, are "forward-looking" statements (as such term is defined the Private securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such "forward-looking" statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the bank's performance and regulatory matters.