To: Glenn Petersen who wrote (1432 ) 5/29/2008 6:49:14 AM From: Glenn Petersen Read Replies (1) | Respond to Community Bankers Acquisition (stock symbol: [t]BTC[/t]) has been having a difficult time closing on its proposed transaction. The company has announced that certain outside investors have purchased 4.1 million shares - approximately 55% of the shares originally sold in the IPO - and that these outside investors will receive options to purchase one common share and one warrant from the insiders for each 4 shares purchased. The strike price on the options is $.01. The shareholder meeting is scheduled for this morning.Community Bankers Acquisition Corp. Announces Significant Changes to its Stockholder Base certain new investors in the Company (the “New Investors”) purchased a total of approximately 4.1 million shares of CBAC common stock pursuant to block purchases of shares effected in privately negotiated transactions with existing public stockholders of the Company. As previously announced, certain of the Company’s founding stockholders are granting the New Investors, in connection with their investment in CBAC, options to purchase additional shares of CBAC common stock and warrants to purchase shares of CBAC common stock from such founding stockholders. The options will have a term of one year from June 8, 2009, the date on which they become exercisable and on which date the underlying founding stockholders’ shares are scheduled to be released from the existing escrow established at the time of the Company’s initial public offering. Thereafter such option securities will continue to be held in an escrow account under the terms of the option agreements for up to one additional year until June 8, 2010. The participating founding stockholders have agreed to use their best efforts to cause the Company to include the shares and warrants purchased by the New Investors upon exercise of the options in any registration statement to be filed by the Company pursuant to the registration rights agreement entered into with the founding stockholders at the time of the Company’s initial public offering.biz.yahoo.com
