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VERSABANK RECEIVES TSX APPROVAL FOR NORMAL COURSE BID

LONDON, ON, August 15, 2022 /PRNewswire/ – VersaBank (“VersaBank” or the “Bank”) (TSX: VBNK) (NASDAQ: VBNK), announced today that it has received approval from the Toronto Stock Exchange (“TSX”) to to proceed with an Issuer of the Normal Course Offering (“OPRCN”) for its common stock.

“Recent market conditions have presented an exceptional opportunity to buy VersaBank stock at an attractive value and this NCIB represents an excellent use of our capital,” said David Taylor, President and CEO, VersaBank. “We believe our stock is undervalued and the current trading price is less than 0.8 times book value. VersaBank has ample excess capital to make meaningful purchases through this NCIB, as well as to fund our significant growth opportunities.”

Pursuant to the tender offer, VersaBank may purchase for cancellation up to 1,700,000 of its common shares representing approximately 9.54% of its public float. Of the August 10, 2022, the float comprised 17,817,350 common shares and there were 27,441,082 common shares issued and outstanding in total. The average daily trading volume (“ADTV”) of the common shares of VersaBank on the TSX for the six months of February 1, 2022July 31, 2022 (the “prior six-month period”) was 4,731 shares. Daily purchases under the tender offer will be limited to 25% of ADTV, or 1,182 common shares, except for block purchases. During the previous six-month period, 1,054,624 common shares of VersaBank were traded on all Canadian stock exchanges. Of this total, 591,481 shares were traded on the TSX and the remaining 463,143 shares were traded on a number of other exchanges and trading systems.

Shopping can start on August 17, 2022 and will end on August 16, 2023, or such earlier date on which VersaBank may make its purchases pursuant to the tender offer. Purchases will be made by VersaBank through the facilities of the TSX and alternative trading systems and in accordance with the rules of the TSX or such alternative trading systems, as applicable, and the prices VersaBank will pay for any common stock will be those of the market price of these shares at the time of acquisition. VersaBank will not make any purchases of common stock other than open market purchases. All shares purchased under the OPRA will be cancelled.

ABOUT VERSABANK

VersaBank is a Schedule I Canadian chartered bank with a difference. VersaBank became the world’s first all-digital financial institution when it embraced its highly efficient business-to-business model using its cutting-edge proprietary financial technology to cost-effectively reach underserved segments of the Canadian banking market in pursuit of a higher net interest margins while mitigating risk. VersaBank obtains all of its deposits and provides the majority of its loans and leases electronically, with innovative deposit and lending solutions for financial intermediaries that enable them to excel in their core businesses. Additionally, leveraging its in-house developed IT security software and capabilities, VersaBank has established wholly owned, washington d.c.DRT Cyber ​​​​Inc., a subsidiary based in New York, to seize significant market opportunities in the field of cybersecurity and develop innovative solutions to address the growing volume of cyber threats that daily threaten financial institutions, companies multinationals and government entities.

VersaBank common stock trades on the TSX and NASDAQ under the symbol VBNK. Its Series 1 Preferred Shares trade on the TSX under the symbol VB.PR.A.

Visit our website at: www.versabank.com

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SOURCEVersaBank