Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 271

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 271
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 stockholders.

Provisions in our certificate
of incorporation and bylaws, federal banking laws, as well as provisions of the Maryland General Corporate Law (“MGCL”),
could make it more difficult for a third party to acquire us or increase the cost of acquiring us, even if doing so would benefit our
stockholders, including transactions in which stockholders might otherwise receive a premium for their shares. These provisions include:

    ·
    establishing a classified board of
    directors such that not all members of the board are elected at one time; nominees for two of our director seats to be designated
    by Castle Creek, and Brush Creek under the Securities Purchase Agreement, so long as certain stock ownership thresholds are maintained;

    ·
    prohibiting any persons from voting more than
    10% of our outstanding shares of common stock;

    ·
    providing for a plurality voting standard in the
    election of directors without cumulative voting;

    ·
    providing that our stockholders may remove members
    of our board of directors only for cause;

    ·
    enabling our board of directors to issue additional
    shares of authorized, but unissued capital stock;

    ·
    enabling our board to issue “blank check”
    preferred stock without further stockholder approval; and

    ·
    enabling our board of directors to amend our bylaws
    without stockholder approval.

Bancorp
34 qualifies as a “smaller reporting company,” and the reduced disclosure obligations applicable to smaller reporting companies
may make its common stock less attractive to investors.

Bancorp 34 is a “smaller
reporting company,” as defined in federal securities laws, and will remain a smaller reporting company until: (i) the fiscal year
following the determination that the market value of its voting and non-voting common shares held by non-affiliates is more than $250
million measured on the last business day of its second fiscal quarter; or (ii) its annual revenues are less than $100 million during
the most recently completed fiscal year and the market value of its voting and non-voting common shares held by non-affiliates is more
than $700 million measured on the last business day of its second fiscal quarter. Smaller reporting companies have reduced disclosure
obligations, such as an exemption from providing selected financial data and an ability to provide simplified executive compensation
information and only two years of audited financial statements. If some investors find Bancorp 34’s common stock less attractive
because Banc