Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 72

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 72
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 with HomeStreet and Mechanics; and |

| • | HomeStreet and Mechanics have each expended and will continue to expend significant costs, fees and expenses for professional services and transaction costs in connection with the proposed merger. |

If any of the aforementioned risks were to materialize, they could lead to significant costs or lost opportunities which may impact each party’s results of operations and financial condition. The merger agreement limits HomeStreet’s ability to pursue alternatives to the merger and may discourage other companies from trying to acquire HomeStreet. The merger agreement contains “no shop” covenants that restrict HomeStreet’s ability to, directly or indirectly, among other things, initiate, solicit, knowingly encourage or knowingly facilitate inquiries or proposals with respect to, or engage or participate in any negotiations concerning, or provide any confidential or nonpublic information or data relating to, any alternative acquisition proposals, subject to certain exceptions. These provisions, in addition to a $10 million termination fee payable under certain circumstances, including certain circumstances involving alternative acquisition proposals and changes in the recommendation of the HomeStreet board of directors, may discourage a potential third-party acquirer that might have an interest in acquiring all or a significant part of HomeStreet from considering or making that acquisition proposal. The shares of combined company common stock to be received by Mechanics shareholders as a result of the merger will have different rights from the shares of Mechanics common stock. Upon completion of the merger, the rights of former Mechanics shareholders who receive shares of combined company common stock in the merger and thereby become shareholders of the combined company will be governed by the amended and restated articles and the amended and restated bylaws. The rights associated with Mechanics common stock are different from the rights associated with the combined company common stock. See the section entitled “ Comparison of the Rights of the Combined Company Shareholders and Mechanics Shareholders” for more information. In addition, the rights of shareholders under Washington law, where the combined company will be organized, may differ from the rights of shareholders under California law, where Mechanics is organized. There are various provisions in the amended and restated articles that could impede a takeover of the combined company. Such provisions may prevent former Mechanics shareholders who receive shares of the combined company common stock in the merger from taking part in a future transaction in which such combined company shareholders could realize a premium over the then-current market price of the combined company common stock. Each HomeStreet shareholder will have a substantially reduced ownership and voting interest, and each shareholder holding Mechanics voting common stock will have a reduced ownership and voting interest, in the combined company after