Meta Financial to raise capital through share sale

Mon Aug 20, 2012 6:54am EDT

Aug 20 (Reuters) - Meta Financial Group Inc said it would raise $34.2 million by selling 1.6 million shares to support growth at its payment services business, which is one of the largest sponsors of prepaid card programs.

The company will sell the shares at $21.91 per share, a 7 percent discount to the stock's Friday close of $23.52 on the Nasdaq.

Meta Financial will sell these shares to hedge funds, including Altamount Capital Partners and Philadelphia Financial Management of San Francisco, and prepaid card company NetSpend Holdings Inc, whose cards are issued by Meta Payment Systems.

Brookside Equity Partners, Weintraub Capital Management, Harvest Capital Strategies and JTH Holding Inc - parent of Liberty Tax Service - will also buy shares under the purchase agreements.

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