(RTTNews) - VersaBank (VBNK) announced its intention to realign corporate structure with the standard framework of a US bank, under which the holding company parent would be domiciled in the United States. Existing shares of VersaBank will be exchanged for new shares of VersaHoldings US Corp., the new parent, which is an existing US-domiciled entity originally established to hold VersaBank's US subsidiaries. The new shares of VersaHoldings will be listed on the Nasdaq and the Toronto Stock Exchange in place of the current VersaBank shares.
VersaBank's Canadian operations will become VersaBank Canada, and will become a wholly owned subsidiary of VersaHoldings. The estimated costs associated with the proposed Structural Realignment are expected to be approximately C$8 million, the vast majority of which is expected to be incurred in the third and fourth quarters of fiscal 2025.
David Taylor, current Chair, President and CEO of VersaHoldings, would relinquish his title as CEO, VersaBank, while continuing in his role as President, VersaBank. Susan McGovern, vice-chair of the board of directors of VersaBank, would be appointed interim CEO, VersaBank until the proposed Structural Realignment is completed. To effect the proposed Structural Realignment, VersaBank and VersaHoldings plan to file a registration statement on Form S-4 with the SEC.
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