Company: CCNE
Filing Date: 2025-03-03
Form Type: S-4/A
Source: 0001193125-25-044149
Chunk: 41

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-03
Form: S-4/A
Chunk 41
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 shareholders of ESSA as a group will receive shares in the merger constituting approximately 29% of the outstanding shares of CNB common stock immediately after the merger. Furthermore, because shares of CNB common stock will be issued to existing ESSA shareholders, current CNB shareholders will have their ownership and voting interests diluted by approximately 29%. Accordingly, both ESSA and CNB shareholders will have less influence on the management and policies of the combined company than they now have on the management and policies of their respective company.

After the merger is completed, ESSA shareholders will become CNB shareholders and will have different rights that may be less advantageous than their current rights.

Upon completion of the merger, ESSA shareholders will become CNB shareholders. Differences in ESSA’s charter and bylaws and CNB’s charter and bylaws will result in changes to the rights of ESSA shareholders who become CNB shareholders. For more information, see the section entitled “Comparison of Shareholder Rights” beginning on page 175.

ESSA will be subject to business uncertainties and contractual restrictions while the merger is pending.

Uncertainty about the effect of the merger on ESSA’s employees, suppliers and customers may have an adverse effect on ESSA. These uncertainties may impair ESSA’s ability to attract, retain and motivate key personnel until the merger is completed, and could cause customers, suppliers and others who deal with ESSA to seek to change existing business relationships with ESSA. ESSA employee retention and recruitment may be particularly challenging prior to the effective time of the merger, as employees and prospective employees may experience uncertainty about their future roles with CNB.**

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**The pursuit of the merger and the preparation for the integration may place a significant burden on management and internal resources. Any significant diversion of management attention away from ongoing business and any difficulties encountered in the transition and integration process could affect the financial results of ESSA and, following the merger, CNB. In addition, the merger agreement requires that ESSA operate in the ordinary course of business consistent with past practice and restricts ESSA from taking certain actions prior to the effective time of the merger or termination of the merger agreement without CNB’s written consent. These restrictions may prevent ESSA from retaining existing customers or pursuing attractive business opportunities that may arise prior to the completion of the merger.

The merger agreement contains provisions that limit ESSA’s ability to pursue alternatives to the merger and may discourage