Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 272

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 272
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orp 34 may rely on these reduced disclosure obligations, there may be a less active trading market for its common stock and
its stock price may be more volatile.

The
suspension of our obligation to file current, quarterly and annual reports with the SEC under Section 15(d) of the Exchange Act will
result in less information about our financial condition and results of operations being readily available to the public and have other
potentially adverse consequences to holders of our common stock.

After we file this Annual Report
on Form 10-K we will cease to file annual, quarterly, current, and other reports and documents with the SEC. We will not be providing
periodic reports in the format currently required of us under the provisions of the Exchange Act and, as a result, shareholders will
have access to less information about us and our business, operations, and financial performance.

In addition, the reduction in the
volume and detail of information about the Company available to the public as a result of the suspension of SEC reporting could cause
deterioration in the liquidity of our common stock. The lack of liquidity provided by a ready market of common stock may result in fewer
opportunities to raise additional capital through private offerings of our securities and utilize equity-based incentive compensation
tools to recruit and retain executive talent. Moreover, companies that file reports with the SEC are often viewed by existing shareholders,
potential investors, employees, investors, customers, vendors and others as more established, reliable and prestigious than privately
held companies. SEC reporting companies are often followed by analysts who publish reports on their operations and prospects. Companies
that terminate their status as an SEC reporting company may risk losing prestige in the eyes of the public, the investment community
and key constituencies.

51

Substantial
future sales of our common stock, or the perception that these sales may occur, could cause the price of our common stock to decline,
or could result in dilution.

Sales of substantial
amounts of Bancorp 34 common stock, including in future offerings, or the perception that these sales could occur, could cause the market
price of Bancorp 34 common stock to decline. These sales could also make it more difficult for us to sell equity or equity-related securities
in the future, at a time and place that we deem appropriate. Castle Creek and Brush Creek are party to a Registration Rights Agreement
under which we may be required to register their approximately 1.5 million shares of Bancorp 34 common stock under the Securities Act