The proposed reorganization is expected to be completed on August 10, 2016 through a share exchange in which the Bank's shareholders will receive one share of common stock of Bancorp in exchange for each share of the Bank's common stock.
Shortly after 10 August 2016, Bancorp’s common stock will be quoted upon the OTC Markets under the same symbol “CBBC.”
Community Business Bank chief executive officer John DiMichele said: “It is our intention to use the new company to improve shareholder value and provide flexible capital enhancement opportunities for future planning and growth purposes.”
Following the reorganization, the Bank's shareholders will be shareholders of the Bancorp, and Bancorp will be the Bank's parent company.
Bancorp is a new corporation which was organized for the sole purpose of forming a bank holding company, and its principal executive officers and directors will be the same as those of the Bank.
The Bank will continue to operate as a California bank, be managed by its current Board of Directors and officers, and will continue the same business in which it presently is engaged at its branch offices. Bank shareholders will be soon receiving a letter from Bancorp’s transfer agent as to how they can exchange their share certificates.
