Company: CFBK
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0000950170-25-060182
Chunk: 15

Company: CF BANKSHARES INC.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 15
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 to the Company must comply in full with the applicable procedures and requirements set forth in the Company’s Bylaws, the SEC’s proxy rules and Delaware law.

Stockholder Rights to Appoint Directors

On October 31, 2019, the Company issued and sold shares of the Company’s Voting Common Stock and shares of the Company’s Series C Preferred Stock in a private placement pursuant to a Securities Purchase Agreement dated October 25, 2019 (the “Securities Purchase Agreement”), among the Company, Castle Creek Capital Partners VII, L.P. (“Castle Creek”) and certain other accredited investors party thereto. Effective May 28, 2020, all of the outstanding shares of the Company’s Series C Preferred Stock were converted into shares of Non-Voting Common Stock of the Company as contemplated by the terms of the Securities Purchase Agreement. As of April 10, 2025, Castle Creek owned an aggregate of 305,428 shares of Voting Common Stock and 1,184,000 shares of Non-Voting Common Stock of the Company. See “Beneficial Ownership of Company Common Stock” below for additional information.

Under the terms of the Securities Purchase Agreement, for so long as Castle Creek, together with its affiliates, owns in the aggregate at least 4.9% of the outstanding shares of Common Stock, Castle Creek is entitled to have one representative appointed to the boards of directors of the Company and CFBank, subject to the satisfaction of legal and regulatory requirements, or to designate one representative to attend the meetings of such boards of directors in a non-voting, non-participating observer capacity. Sundeep Rana, a Managing Principal of Castle Creek, currently serves as the director representative for Castle Creek on the boards of directors of the Company and CFBank.

SEC Universal Proxy Rule

SEC Rule 14a-19 now requires the use of a universal proxy card in contested director elections. Under this “universal proxy rule,” a stockholder intending to engage in a director election contest with respect to an annual meeting of stockholders must give the Company notice of its intent to solicit proxies by providing the name(s) of the stockholder’s nominee(s) and certain other information at least 60 calendar days prior to the anniversary of the previous year's annual meeting date (except that, if the Company did not hold an annual meeting during the previous year, or if the date of the meeting has changed by more than 30 calendar days from the previous year, then notice must be provided by the later of 60 calendar