Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 74

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 74
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 a dilutive effect on the
holders of our common stock and could have a material negative effect on the value of our common stock.

The
Bancorp 34 articles of incorporation designate the state and federal courts located within the state of Maryland as the sole and exclusive
forum for certain types of actions and proceedings that may be initiated by Bancorp 34’s stockholders, which could limit Bancorp
34’s stockholders’ ability to obtain a favorable judicial forum for disputes with Bancorp 34 or its directors, officers or
employees.

The Bancorp 34 articles
of incorporation, which will govern the combined company following completion of the merger, provide that, unless Bancorp 34 consents
in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought
on behalf of Bancorp 34, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee
of Bancorp 34 to Bancorp 34 or Bancorp 34’s stockholders, (iii) any action asserting a claim pursuant to any provision of the MGCL,
or (iv) any action asserting a claim governed by the internal affairs doctrine shall be a state or federal court located within the state
of Maryland, in all cases subject to the court’s having personal jurisdiction over the indispensable parties named as defendants.
To the extent permitted by law, the exclusive forum clause in Bancorp 34’s articles of incorporation could apply, respectively,
to claims of the type described in the previous sentence that arise or purport to arise under U.S. federal securities laws, including
the Securities Act and the Exchange Act. Section 27 of the Exchange Act creates exclusive federal jurisdiction over all suits brought
to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder, and Section 22 of the Securities
Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the
Securities Act or the rules and regulations thereunder.

Therefore, claims arising
under the Exchange Act may not be brought in state courts, while claims arising under the Securities Act may be brought in either federal
or state courts. Bancorp 34’s shareholders will not be deemed, as a result of the existence or enforcement of these exclusive forum
provisions, to have waived Bancorp 34’s compliance with the federal securities laws and the rules and regulations thereunder. Bancorp