MVB Financial Corp. Completes Execution of Strategic Minority Investment in Warp Speed Holdings LLC

Rhea-AI Summary

MVB Financial Corp. (MVBF) has successfully completed the acquisition of a 37.5% interest in Warp Speed Holdings LLC for $48 million. The transaction consists of $38.4 million in cash and $9.6 million in MVB common stock. The stock issuance is based on the average closing price over the previous 20 trading days. Raymond James & Associate, Inc. acted as the financial advisor, while Squire Patton Boggs served as legal counsel. This move aligns with MVB's strategy to expand its Fintech offerings and enhance its market position.

Positive

• Acquisition of 37.5% interest in Warp Speed Holdings LLC enhances MVB's strategic position in the Fintech sector.
• Transaction valued at $48 million, signaling strong investment towards growth.

Negative

• Acquisition involves a substantial cash component of $38.4 million, impacting liquidity.
• Potential risks associated with the integration of Warp Speed Holdings LLC may affect operational efficiency.

FAIRMONT, W.Va.--(BUSINESS WIRE)-- MVB Financial Corp. (Nasdaq: MVBF) (“MVB” or the “Company”), the parent holding company for MVB Bank (the “Bank”), has announced the completion of the previously announced transaction in which MVBF has acquired a 37.5% interest in Warp Speed Holdings LLC (“Warp”) for $48 million (the “Consideration”). The Consideration is comprised of $38.4 million cash and $9.6 million in MVB common stock, with the number of shares issued being based on the volume weighted average closing price for shares of MVB common stock for the 20 trading days ending the day prior to the closing date.

Raymond James & Associate, Inc. served as MVB’s financial advisor, and Squire Patton Boggs served as legal counsel to MVB.

About MVB Financial Corp.

MVB Financial Corp. (“MVB Financial” or “MVB”), the innovative financial holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® under the ticker “MVBF.” Through its subsidiary, MVB Bank, Inc., (“MVB Bank”) and the bank’s subsidiaries, MVB provides services to individuals and corporate clients in the Mid-Atlantic region, as well as to Fintech, Payment and Gaming clients throughout the United States. For more information about MVB, please visit ir.mvbbanking.com.

Forward-looking Statements

MVB Financial Corp. has made forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this Press Release. These forward-looking statements are based on current expectations about the future and subject to risks and uncertainties. Forward-looking statements include, without limitation, information concerning possible or assumed future results of operations of the Company and its subsidiaries, as well as statements regarding MVB’s future plans with regard to its Fintech line of business. When words such as “plans,” “believes,” “expects,” “anticipates,” “continues,” “may” or similar expressions occur in this Press Release, the Company is making forward-looking statements. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in the forward-looking statements contained in this Press Release. Those factors include but are not limited to: credit risk; changes in market interest rates; revaluation of equity investments, including MVB’s investments in Fintech companies; inability to further scale up the Fintech line of business; competition; economic downturn or recession; and government regulation and supervision. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as well as its other filings with the SEC, which are available on the SEC website at www.sec.gov. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221003005972/en/

MEDIA CONTACT

Amy Baker

VP, Corporate Communications and Marketing

abaker@mvbbanking.com

(844) 682-2265

INVESTOR RELATIONS

Marcie Lipscomb

mlipscomb@mvbbanking.com

(844) 682-2265

Source: MVB Financial Corp.

FAQ

What is the recent acquisition made by MVB Financial Corp. (MVBF)?

MVB Financial Corp. has acquired a 37.5% interest in Warp Speed Holdings LLC for $48 million.

How much did MVB Financial pay in cash for the Warp acquisition?

MVB Financial paid $38.4 million in cash for the acquisition of Warp Speed Holdings LLC.

What is the significance of the Warp Speed acquisition for MVBF investors?

The acquisition is part of MVB's strategy to enhance its presence in the Fintech sector, which could lead to growth opportunities.

Who advised MVB Financial on the Warp acquisition?

Raymond James & Associate, Inc. served as MVB's financial advisor during the acquisition.

What are the risks associated with MVB's acquisition of Warp Speed Holdings?

Integration risks and potential impact on operational efficiency are concerns following the acquisition of Warp Speed Holdings.