Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 72

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 72
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 combined company common stock, have the effect of increasing the volatility in the trading price of the combined company common stock and impact the ability of the combined company to engage in capital market transactions or the price at which the combined company is able to offer or sell the combined company common stock.

**Following the merger, an active trading market for the combined company common stock may not be sustained and the shareholders may not be able to resell their shares of combined company common stock for a profit.**

Prior to the merger, there had been no public market for Mechanics common stock. Following the merger, an active trading market for combined company common stock may not be sustained or otherwise develop. If an active market for combined company common stock is not sustained or does not otherwise develop, it may be difficult for its shareholders to sell their shares of combined company common stock at an attractive price or at all. In addition, the Class B common stock will not be listed on the NYSE or Nasdaq, which may further limit the market for Class B common stock.

**HomeStreet shareholders and Mechanics shareholders will not have dissenters’ rights or appraisal rights in connection with the merger or other matters to be voted on at the HomeStreet Special Meeting.**

Appraisal rights (also known as dissenters’ rights) are statutory rights that, if applicable under law, enable shareholders to dissent from an extraordinary transaction, such as a merger, and to demand that the corporation pay the fair value for their shares as determined by a court in a judicial proceeding instead of receiving the consideration offered to shareholders in connection with the extraordinary transaction.

Under Section 23B.13.020 of the WBCA, a shareholder is entitled to dissent from, and obtain payment of the fair value of the shareholder’s shares only in the event of certain corporate acts, including: certain mergers which require shareholder approval and which the shareholder is entitled to vote on; certain share exchanges which the shareholder is entitled to vote on; certain sales or exchanges of all, or substantially all, of the corporation’s property which the shareholder is entitled to vote on; certain amendments to the articles of incorporation effecting a redemption or cancellation of the shareholders shares; and any corporate action taken pursuant to a shareholder vote to the extent the bylaws or articles of incorporation provide that the shareholders are entitled to dissent and obtain payment for their shares.

Under the WBCA, HomeStreet shareholders will not be entitled to dissenters’ rights in connection with the merger or other matters to be voted on at the HomeStreet special meeting because HomeStreet shareholders are