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Bank of Virginia Announces Reverse Stock Split
Oct 4 - Bank of Virginia (Nasdaq:BOVA) has announced a 1-for-5 reverse stock split of its shares of common stock, which will be effected just prior to market open on Oct. 4, 2012. The reverse stock split was previously approved by the bank's shareholders at the annual meeting of shareholders on June 28, 2012.
As a result of the reverse stock split, every five shares of common stock issued and outstanding prior to the opening of trading on Oct. 4, 2012, will be consolidated into one issued and outstanding share. The reverse stock split reduces the number of issued and outstanding shares of common stock from 15,494,849 shares to 3,098,970 shares. No fractional shares of common stock will be issued as a result of the reverse stock split, and any fractional shares will be paid in cash. Proportional adjustments will be made to the bank's outstanding stock options. The bank's authorized shares will remain unchanged.
The reverse stock split is intended to increase the per share trading price of the bank's shares of common stock to satisfy the $1 minimum bid price requirement for continued listing on the NASDAQ Capital Market. As previously announced, in order to maintain the bank's listing on NASDAQ, on or before Oct. 29, 2012, the bank's common stock must have a closing bid price of $1 or more for a minimum of 10 consecutive trading days prior to Oct. 29, 2012. There can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of the bank's common stock prior to Oct. 29, 2012, to meet this requirement.
Trading of the bank's shares of common stock on the NASDAQ Capital Market will continue, on a split-adjusted basis, with the opening of the markets on Oct. 4, 2012, under new CUSIP number 06544P 203. The bank's shares will continue to trade on the Nasdaq Capital Market under the symbol "BOVA."
For more information on the reverse stock split, please refer to the bank's proxy materials for its most recently held annual meeting of shareholders which can be accessed through the bank's website at www.bankofva.com.
About Bank of Virginia
Bank of Virginia, a state-chartered bank headquartered in Midlothian, Va., currently operates four full-service offices in the counties of Chesterfield and Henrico, Va. Bank of Virginia's common stock is traded on the NASDAQ stock market under the quotation symbol "BOVA." Additional investor relations information can be found on the internet at www.bankofva.com.