Meta Financial Group, Inc.® announced that it has completed transactions in which the company has sold, on September 28, 2012, to investors an aggregate of 1,563,100 shares of the company's common stock, for total consideration of approximately $34.2 million. The price per share, $21.91, was determined by averaging the daily volume weighted average price of the company's common stock for a trading period preceding the signing of the purchase agreements.
At least 90% of the proceeds will be used to further capitalize MetaBank, the company's wholly owned subsidiary, and will qualify as tangible common equity and Tier 1 capital at September 30, 2012. The shares were sold in order to support expected significant growth in MetaBank's Meta Payment Systems' programs. The remainder of the proceeds will be used by the company for general corporate purposes.
The shares were sold to an affiliate of Altamont Capital Partners, affiliates of Philadelphia Financial Management of San Francisco, LLC, and NetSpend Holdings, Inc. (NASDAQ: NTSP), each of which is an existing stockholder of the Company; an affiliate of Brookside Equity Partners LLC; an affiliate of JTH Holding Inc. (NASDAQ: TAX), parent of Liberty Tax Service; affiliates of Weintraub Capital Management, L.P.; affiliates of Harvest Capital Strategies LLC; and other institutional and individual investors.
The closing of these private placement transactions was consummated following stockholder approval of an amendment to the company's Certificate of Incorporation to, among other things, increase the number of authorized shares of common stock to 10.0 million from 5.2 million and increase the number of authorized preferred shares to 3.0 million from 0.8 million, as well as stockholder approval of the private placement transactions as required under NASDAQ Stock Market Rules.
J. Tyler Haahr, Chairman, President and Chief Executive Officer of the company and MetaBank, commented, "We are pleased by the support we have received from our stockholders in approving these transactions at our Special Meeting, and to have closed these placements supporting our growth plans during our fiscal year ended September 30, 2012."