Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 223

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 223
---

Bank Boards of Directors. To the extent that Brush
Creek or Castle Creek maintains the minimum ownership and does not have a representative appointed to the board of directors of Bancorp
34 or the Bank, or the board representative
is unable to attend a board meeting, Brush Creek and Castle Creek have the right to appoint a representative to attend meetings of the
boards of directors in a non-voting observer capacity. Bancorp 34 has agreed to use its reasonable efforts to have the board representative
elected as a director of the company by the shareholders of the company and will solicit proxies for the board representative to the
same extent as it does for any of its other nominees to the board. Each board member appointed is entitled to compensation and indemnification
and insurance coverage in connection with his or her role as a board member to the same extent as other members of our boards of directors.

Each
of Brush Creek’s and Castle Creek’s nominating right will terminate at such time as the applicable Fund owns less than 4.9%
of our common stock. Mr. Ahern currently serves as the Brush Creek representative on Bancorp 34’s and the
Bank’s Boards of Directors. See “Management—Board
of Directors—Kevin Ahern” for Mr. Ahern’s biography. Mr. Cohn currently serves as the Castle Creek representative
on Bancorp 34’s and the Bank’s Boards
of Directors. See “Management—Board of Directors—Spencer Cohn” for Mr. Cohn’s biography.

136

In
consideration of a portion of the purchase price in our 2022 and 2023 private placement, we issued warrants to purchase an aggregate
of 140,385 shares of our common stock to the Funds. The aggregate proceeds from the Funds of $19.9 million in our 2022 and 2023 private
placement were allocated between the 702,008 voting common shares purchased, 701,849 common nonvoting shares purchased and the 140,385
warrants purchased based on the relative fair value of the warrants, resulting in a purchase price allocation of $19.9 million for the
shares of common stock and non-voting common stock and $0.0 million for the warrants. The warrants are exercisable until December 30,
2029, or January 27, 2030, and have an exercise price of $14.00 per share. In addition, we paid approximately $104,000 to the Funds,
as reimbursement