Union Bankshares in Morrisville, Vt., could raise up to $40 million in the coming months by selling common stock.
The company disclosed in a regulatory filing that it had entered into an equity distribution agreement with an investment bank to sell stock “from time to time.” Union will set parameters for the offering, including the number of shares to be issued, the time period for selling stock, and any minimum price per share.
The investment bank’s commission will be equal to 3% of the gross sales price of the shares sold.
Union noted that it has no obligation to sell any stock.
Net proceeds could be used for a variety of purposes, including contributing capital to Union Bank, repaying debt, and funding acquisitions.