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Meta Financial Group, Inc. Announces Purchase Agreement With Nantahala Capital For 130.805K Shares, $6M In New Capital

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Meta Financial Group, Inc.® (the "Company") (NASDAQ: CASH) today announced that it entered into a purchase agreement on December 7, 2015, under which the Company has agreed to sell to Nantahala Capital Partners SI, LP an aggregate of 130,805 shares of the Company's common stock, for aggregate consideration of approximately $6.0 million. The Company has agreed to sell shares of its common stock pursuant to the purchase agreement at a price per share equal to the closing price of the Company's common stock on December 4, 2015, the most recent closing price at the time the Company and the investor entered into the Purchase Agreement. The Company intends to use the net proceeds from this proposed stock issuance to fund increased balance sheet growth and costs associated with recently executed agreements between MetaBank and multiple payment solutions providers with respect to MetaBank's payment solutions division, Meta Payment Systems®.

J. Tyler Haahr, Chairman and Chief Executive Officer of the Company and MetaBank, commented, "We are very pleased with this additional investment by a current shareholder and the flexibility it allows to execute on growth opportunities. We do not expect any additional capital raises in the foreseeable future. We anticipate with the new capital raised, we will be prepared for new market opportunities."

The closing of the proposed private placement transaction is expected to occur on December 17, 2015 and is subject to customary conditions, including the non-occurrence of a material adverse effect as to the Company.

The Company will file a Current Report on Form 8-K with the Securities and Exchange Commission, which will include a more detailed description of the proposed private placement transaction and a copy of the purchase agreement.

This press release and other important information about the Company are available at http://www.metafinancialgroup.com.

Posted-In: News Press Releases

 

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