Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 423

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 423
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 of $19.9 million in our 2022 and 2023 private
placement were allocated between the 702,008 voting common shares purchased, 701,849 common nonvoting shares purchased and the 140,385
warrants purchased based on the relative fair value of the warrants, resulting in a purchase price allocation of $19.9 million for the
shares of common stock and non-voting common stock and $0.0 million for the warrants. The warrants are exercisable until December 30,
2029, or January 27, 2030, and have an exercise price of $14.00 per share. In addition, we paid approximately $104,000 to the Funds,
as reimbursement for due diligence and related expenses in connection with its investment in our private placement. The Securities Purchase
Agreement for the 2022 and 2023 private placement included representations, warranties and covenants customary for a transaction of this
type and was materially similar to the stock subscription agreements entered into between Bancorp 34 and the other investors in the offering,
except that the other investors (i) except for Brush Creek and Castle Creek, were not entitled to designate a board representative and
board observer, (ii) purchased common stock in the private placement at $14.00 per share (the same price as the Funds), and (iii) were
not reimbursed for due diligence and related expenses in connection with the private placement, each as described above. In addition,
the Funds were granted “venture capital operating company” rights that were not provided to the other investors, including
consultation rights, inspection and access rights, and rights to receive materials for all meetings of our Board of Directors, and the
right to audited and unaudited financial statements, annual budget and other financial and operations information, including consultation
with officers and directors of the company no more than once per calendar quarter, for so long as the Funds maintain an investment in
our common stock, subject to their agreement to maintain the confidentiality of any non-public information provided to them and to comply
with applicable securities laws.

Registration
Rights Agreement

Registration
Rights Agreement with the Funds. In connection with our 2022 and 2023 private placement, we entered into a registration rights agreement
for the benefit of the Funds with respect to our common stock sold to the Funds in the private placements. Under the terms of the registration
rights agreement, we agreed to file a registration statement under the Securities Act as would allow the