Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 74

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 74
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 to shares of combined company common stock such key shareholders acquire in the merger, in each case, subject to certain minimum and maximum thresholds and other customary limitations. The existence and potential or actual exercise of such rights, and the perception that a large number of shares will be publicly sold in the market, could adversely impact the trading price of the 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