Virginia Partners Bank announced that it has entered into an agreement with Kenneth R. Lehman for the private placement of 929,152 common shares at a price of $9.255751 per share for gross proceeds of $8,600,000 on October 18, 2016. The company will also issue 464,576 series A warrants and 464,576 series B warrants with an exercise price equal to 90% of the company's tangible common equity per share as of the most recent quarter-end preceding the date of exercise. The warrants will be exercisable during certain periods that meet certain regulatory capital conditions in the applicable warrant agreement.

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close during December 2016. Post the closing of the transaction; the investor will join the company's board of directors. The transaction has been approved by the board of directors of the company.

The company will pay net expenses of $766,000 in the transaction.