VERSABANK TRANSFERS DIGITAL DEPOSIT RECEIPT ASSETS AND OTHER RESOURCES TO WHOLLY OWNED SUBSIDIARY FOCUSED EXCLUSIVELY ON DIGITAL ASSET OPPORTUNITY

- Corporate Realignment Supports Planned Divestiture of Cyber Security Businesses -

LONDON, ON, Jan. 27, 2025 /CNW/ - VersaBank (TSX:VBNK.TO) (NASDAQ:VBNK), a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today announced the internal transfer of certain assets, including intellectual property, and other resources, including personnel, related to its revolutionary Digital Deposit Receipt technology ("DDR") to an existing, wholly owned subsidiary of DRT Cyber Inc. ("DRTC") (the "Transfer"). The subsidiary, which will exclusively hold DDR assets and resources, has been renamed Digital Meteor, Inc., and is expected to enable VersaBank to generate additional shareholder value by capitalizing on its proven, proprietary digital asset technology and intellectual property, alongside its strong anticipated growth from ramping up its Receivable Purchase Program ("RPP") in the U.S. The Transfer also supports the Bank's planned divestiture of its Cyber Security businesses. There are no material financial implications associated with the Transfer.