Blue Ridge Bankshares, Inc. (NYSE American:BRBS), a Virginia-based commercial bank, announced today the automatic conversion of its Series B Preferred Stock into common stock. This conversion follows the recent shareholder approvals and regulatory amendments.
On Monday, June 20, 2024, the company's shareholders approved an amendment to the articles of incorporation allowing for an increase in the number of authorized shares of common stock to at least 150,000,000 shares. Additionally, shareholders authorized the issuance of shares of common stock exceeding 20% of the outstanding shares upon the conversion or exchange of preferred stock and certain warrants.
Following the shareholder approvals, the Virginia State Corporation Commission issued a certificate of amendment on June 21, 2024. Consequently, today, all 12,558 outstanding shares of Series B Preferred Stock were automatically converted into 50,232,000 shares of Common Stock. Furthermore, outstanding warrants exercisable into 6,549 shares of Series B Preferred Stock were automatically converted into warrants for 26,196,000 shares of Common Stock, subject to beneficial ownership limitations.
The company also anticipates that the outstanding shares of Series C Preferred Stock will be exchanged for shares of Common Stock during the third quarter of 2024.
This conversion of preferred stock into common stock is a significant event for Blue Ridge Bankshares, as it reflects the company's efforts to comply with regulatory requirements and shareholder directives. The conversion also potentially expands the company's common stock base, which could have implications for the stock's liquidity and market dynamics.
In other recent news, Blue Ridge Bankshares, Inc. has made substantial changes to its corporate structure. The Virginia-based bank has tripled its authorized shares of common stock from 50 million to 150 million, as per an amendment to its Articles of Incorporation effective from June 21, 2024. This amendment was initially adopted by the Board of Directors on April 1, 2024, and later approved by shareholders in a special meeting.
In addition to this, the bank also announced the upcoming retirement of five of its directors. Richard A. Farmar III, Andrew C. Holzwarth, Robert S. Janney, Mensel D. Dean Jr., and Larry Dees will retire from the Boards of Directors of both the company and its wholly-owned subsidiary, Blue Ridge Bank, National Association. These retirements are set to coincide with the company’s annual meeting of shareholders, tentatively scheduled for September 25, 2024.
Furthermore, the bank confirmed the approval of Proposal 1, which allows for the issuance of shares representing more than 20% of the outstanding common stock upon conversion or exchange of the recently issued Series B and Series C preferred stock and related warrants. This proposal received a majority vote at the special meeting. These are some of the recent developments in the company.
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