Treasury to Exchange Investment in Company for Mandatorily Convertible Preferred Stock
NORFOLK, Va., Aug. 12, 2010 (GLOBE NEWSWIRE) — Hampton Roads Bankshares, Inc. (the “Company”) (Nasdaq:HMPR), the holding company for The Bank of Hampton Roads (the “Bank”) and Shore Bank, today announced that it has entered into an agreement (the “Exchange Agreement”) with the United States Department of the Treasury (“Treasury”) pursuant to which Treasury will exchange all of the cumulative preferred stock it purchased from the Company in 2008 under Treasury’s Capital Purchase Program for a new series of mandatorily convertible preferred stock (the “Exchange Transaction”). The Exchange Transaction is related to the Company’s planned capital raise of at least $275 million. The mandatorily convertible preferred stock which the Treasury receives through the Exchange Transaction is expected to convert into the Company’s common stock contemporaneous with the closing of the capital raise.
John A. B. “Andy” Davies, Jr., the Company’s President and Chief Executive Officer, said, “We are pleased to announce the execution of the Exchange Agreement with the United States Treasury. This agreement facilitates our capital raise, which will substantially strengthen our balance sheet and provide a solid foundation for the future.”
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