El Centro, CA – (NewMediaWire) – September 17, 2021 – CMUV Bancorp (OTCQB: CMUV) (the “Company”) announced that it has commenced a tender offer to purchase up to 459,052 shares of its common stock at a price per share of $13.05. The tender offer will expire on October 15, 2021, unless extended. Tenders of shares must be made prior to the expiration of the tender offer. As of September 17, 2021, the Company had 2,295,264 shares of Common Stock issued and outstanding. The 459,052 Shares represent 20% of the total number of Shares issued and outstanding as of September 17, 2021.
“Our Company continues to prosper in these challenging times and, although we cannot predict the future, we remain committed to serving our communities and creating value for shareholders,” said Jon A. Edney, the Company’s President and CEO. “However, liquidity for thinly-traded stocks such as CMUV’s is limited, and we are pleased to be in a position to offer liquidity to shareholders who desire it.”
The tender offer is not conditioned upon any minimum number of shares being tendered; however, the tender offer is subject to a number of other terms and conditions as set forth in the letter to shareholders dated September 17, 2021, the Questions and Answers sheet attached to the letter to shareholders, the related Letter of Transmittal and other documents, which will be mailed to shareholders of record as of September 17, 2021. The Company intends to fund the purchase of shares tendered by issuing subordinated debt. Should the tender offer be fully accepted the total paid for shares tendered will be $6 million. The amount of subordinated debt incurred by the Company in that event would be $7.5 million, with the excess after expenses to be used for general corporate purposes.
The Board of Directors of the Company has approved the tender offer. However, neither the Company nor its Board of Directors is making any recommendation to its shareholders as to whether to tender or refrain from tendering their shares. Shareholders must make their own decisions as to whether to tender their shares and, if so, how many shares to tender. The tender price of $13.05 is a 12.4% premium to the last actual trade in the Company’s stock at $11.61 on September 10, 2021.
CMUV Bancorp is the parent company of Community Valley Bank which began operations on October 1, 2007. CVB was started by a group of local small business owners with the idea of bringing community banking back to the Imperial Valley. CVB had an original plan to provide individualized banking to the business community; local people, making local decisions to help businesses grow and prosper. For more information, visit www.yourcvb.com.
Certain statements in this press release are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). CMUV Bancorp cautions readers that a number of important factors could cause actual results to differ materially from those in the forward‐looking statements. These factors include the effects of the COVID-19 pandemic and related government actions on CVB and its customers, loan losses, economic conditions and competition in the geographic and business areas in which CVB operates, the effects of bank mergers and acquisitions in CVB’s markets, CVB’s ability to attract and retain key employees, system failures and internet security, inflation, fluctuations in interest rates, legislation and governmental regulation, including government regulation affecting the ability of CVB to pay dividends. You should not place undue reliance on forward‐looking statements and CMUV Bancorp undertakes no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise.
Jon A. Edney