Meta Financial Group (CASH) in Storm Lake, Iowa, will raise $34.2 million through the private placement of stock to a group of investors and will use the funds to recapitalize its bank and support growth.
The company will sell almost 1.6 million shares of common stock at $21.91 per share through nine separate purchase agreements, Meta said Monday. The price per share is based on the volume weighted average prices of Meta's common stock over a recent 20 trading day period.
Meta said it will invest at least 90% of the proceeds to further capitalize its MetaBank and support growth for Meta Payment Systems programs. The funds will qualify as tangible common equity and Tier 1 capital. At June 30, MetaBank's Tier 1 (core) capital to adjusted total assets was 7.07%. The remainder of the proceeds will be used for general corporate purposes.
Meta raised $13.2 million through three separate private placements in May in addition to raising $7.2 million earlier this year through the
Existing stockholders, including affiliates of Altamont Capital Partners and Philadelphia Financial Management of San Francisco and NetSpend Holdings, have agreed to purchase shares in the deal. Other investors include affiliates of Brookside Equity Partners, JTH Holding, Weintraub Capital Management and Harvest Capital Strategies, in addition to other institutional and individual investors.
Meta Financial said last week that it earned $2.4 million in the quarter that ended June 30, compared to a loss of $1 million in the same period last year.
