Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 74

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 74
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 outstanding shares of the common stock of the combined company will be held by existing holders of the equity interests of Mechanics, and approximately 8.7% will be held by the existing holders of the common stock of HomeStreet. Following the consummation of the merger, the Ford Entities and their controlled affiliates will control approximately 77.7% of the voting power of the combined company. Consequently, existing HomeStreet shareholders, as a group, will exercise significantly less influence over the management and policies of the combined company than they currently may have over HomeStreet’s management team and policies.

Through their indirect ownership of a majority of the combined company’s voting power and the provisions set forth in the amended and restated articles and the amended and restated bylaws, the Ford Entities and their affiliates will have the ability to elect the combined company’s directors. Further, the Ford Entities and their affiliates will also have control over most other matters submitted to shareholders for approval, including changes in capital structure, transactions requiring stockholder approval under Washington law and corporate governance. The Ford Entities and their affiliates may have different interests than other holders of HomeStreet common stock and may make decisions adverse to such holders’ interests.

Among other things, the Ford Entities and their affiliates’ control could delay, defer, or prevent a sale of HomeStreet that HomeStreet’s other shareholders support, or, conversely, this control could result in the consummation of such a transaction that other shareholders do not support. This concentrated control could discourage a potential investor from seeking to acquire HomeStreet common stock and, as a result, might harm the market price of HomeStreet common stock.

**The combined company will meet the requirements to be a “controlled company” within the meaning of the rules of NASDAQ and the NYSE and, as a result, will qualify for, and intends to rely on, exemptions from certain corporate governance standards, which limit the presence of independent directors on its board of directors or board committees.**

Following the consummation of the merger, the Ford Entities will control approximately 77.7% of the voting power of the combined company. The combined company will therefore be a “controlled company” for purposes of NASDAQ Listing Rules and Section 303A of the NYSE Listed Company Manual and will qualify for, and intends to rely on, exemptions from certain governance standards that would otherwise be applicable.

Under NASDAQ Listing Rules and Section 303A of the NYSE Listed Company Manual, a company of which more than 50% of the voting power is held by