CMUV Bancorp Announces Tender Offer to Repurchase up to Ten Percent of Its Outstanding Shares of Common Stock
EL CENTRO, CA - (NewMediaWire) - July 20, 2023 - CMUV Bancorp (OTCQB: CMUV) (the “Company”) announced that it has commenced a tender offer to purchase up to 10% of its outstanding shares, or 187,765 shares of its common stock, at a price per share of $14.25, provided the Company may increase the number of shares it purchases up to 200,000 shares. The tender offer will expire on August 17, 2023, unless extended. Tenders of shares must be made prior to the expiration of the tender offer. As of July 20, 2023, the Company had 1,877,651 shares of Common Stock issued and outstanding.
“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, the lack of significant trading volume in our stock may limit the ability of shareholders to sell their shares if they desire to do so, and we are pleased to be in a position to offer to purchase some of our outstanding shares.”
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 July 20, 2023, 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 July 20, 2023. The Company intends to fund the purchase of shares tendered and related expenses at a total cost of $3,0000,000, supported by cash dividend of up to $2,750,000 from its subsidiary, Community Valley Bank, and up to $250,000 from cash reserves of the Company. Should the tender offer for 10% of the outstanding shares be fully accepted the total paid for shares tendered will be $2,675,651.
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 $14.25 is a 6.4% premium to the last actual trade in the Company’s stock at $13.40 on July 19, 2023.
About CMUV Bancorp
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 volatility and uncertainty facing the banking industry following the recent failures of financial institutions, the lack of soundness of other financial institutions, management of liquidity, uninsured deposits, customer concentrations, 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, President & CEO
Phone: (760) 352-1889