VersaBank's board is urging shareholders to approve a plan to reorganize the business into a standard U.S. bank holding company model, a move to clear the way for its American expansion.
The London, Ontario-based digital bank said Tuesday that its board unanimously recommends that shareholders vote in favor of the proposed reorganization, which would establish Versa Bancorp as the new overarching parent entity.
Under the executed reorganization agreement, a new Delaware corporation will be created to be the direct holding company of VersaBank and VersaBank USA National Association.
VersaBank is seeking to expand its core point-of-sale receivable purchase program in the U.S.
VersaBank confirmed that proxy circulars and voting materials are being mailed to its shareholders ahead of a special meeting scheduled for Sept. 16. The proposed reorganization will require approval by at least two-thirds of the votes cast at the meeting.
The transaction follows approval from the Securities and Exchange Commission of the bank's registration statement earlier this month as VersaBank advances its U.S. expansion strategy, which includes expanding its core point-of-sale loan program.
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