Meta Financial Group in Sioux Falls, S.D., agreed to sell $3.1 million of common stock to a group of existing investors and reached a separate agreement to issue prepaid cards for a business partner.
The $2.3 billion-asset company will sell 71,000 shares to a group that includes Nantahala Capital Partners in Darien, Conn. Meta plans to use the proceeds to finance a future acquisition and for general corporate purposes. Meta did not identify the target company it hopes to acquire.
Meta on June 30 announced that it had sold $23 million of common stock to some institutional investors. Combined, the two agreements represent the sale of about 9% of Meta's outstanding common stock.
Katten Muchin Rosenman advised Meta on the recent securities sale.
Separately, Meta's payments division, Meta Payment Systems, announced on Monday that it agreed to become an issuing bank for prepaid cards marketed and distributed by InComm in Atlanta.
Terms of the agreement with InComm were not disclosed.