Old Dominion National Bank of North Garden, Va., has struck a deal to raise funds from an investor, contingent on the success of a private placement.
The $45 million-asset Old Dominion plans a private placement of between $7 million and $12 million, which it expects to close early in the second quarter. Wesley Yuan, a private investor, has agreed to buy a "significant amount" of equity in the bank if the private placement reaches $7 million, the bank said Thursday in a news release.
Under the deal, Yuan would be named a director of the bank and would be able to designate a majority of the board.
If the private placement is successful, the bank's current shareholders would be given the opportunity to buy additional equity, up to 10% of the amount sold in the placement, at the stock price Yuan receives.
"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," Old Dominion Chief Executive Charles Darnell said in the news release.
The deal is subject to regulatory approval.
Old Dominion is a privately held bank founded in 2007, with branches in North Garden and Scottsville, Va. The bank did not immediately return American Banker's calls seeking additional details.