Cordia Bancorp (BVA) in Midlothian, Va., has raised $15.4 million.
The company said in a press release Thursday that it sold $6.7 million in convertible preferred stock to a fund managed by Tricadia Capital Management. Michael Rosinus, Tricadia's senior advisor, and David Zlatin, chief operating officer at Ramat Securities, will join Cordia's board.
Other institutional and individual investors, including Cordia's senior executive officers and all of its directors, also participated.
Cordia said it will largely use the capital to support organic and strategic growth. The company also plans to add two branches in the Richmond, Va., suburbs.
The transaction "will roughly double the equity capital of Cordia and position Bank of Virginia for a significant new phase of growth," Jack Zoeller, Cordia's president and chief executive, said in the release. "We anticipate continuing the expansion of our commercial and consumer lending."
The preferred stock will convert into common stock if Cordia's shareholders approve the conversion. The shares will convert to roughly 3.6 million shares of common stock at a conversion price will be $4.25 per common share.
The transaction was structured to preserve a substantial majority of Cordia's $6.7 million deferred-tax asset.
