Community Heritage Financial, Inc. Announces Closing of Public Offering of Common Stock Under Regulation A+

Rhea-AI Summary

Community Heritage Financial announced the successful closing of its public offering of 600,000 shares of common stock at $21.00 per share, generating approximately $12.6 million in gross proceeds. After deductions, net proceeds are expected to be around $11.4 million. Piper Sandler acted as the sole manager and has a 30-day option to purchase an additional 90,000 shares. The offering statement was qualified by the SEC on September 28, 2022. This funding aims to bolster the company's financial position and support its banking operations.

Positive

• Gross proceeds of approximately $12.6 million from the public offering.
• Net proceeds expected to be around $11.4 million, enhancing the company's liquidity.

Negative

• Potential dilution of existing shareholders due to the new stock issuance.

MIDDLETOWN, Md., Oct. 3, 2022 /PRNewswire/ -- Community Heritage Financial, Inc. (the "Company") (OTC PK: CMHF), the parent company of Middletown Valley Bank (the "Bank"), today announced the closing of its underwritten public offering of 600,000 shares of common stock at a public offering price of $21.00 per share.  The offering resulted in gross proceeds to the Company of approximately $12.6 million.  The net proceeds to the Company, after deducting the underwriting discount and estimated offering expenses, are expected to be approximately $11.4 million.

Piper Sandler & Co. acted as the sole manager for the offering and has a 30-day option to purchase up to 90,000 additional shares of common stock from the Company at the public offering price, less the underwriting discount, to cover any over-allotments.

The Company was represented by Baker, Donelson, Bearman, Caldwell & Berkowitz, PC. Holland & Knight LLP acted as counsel to the underwriter. 

An offering statement on Form 1-A, as amended by the Post-Qualification Amendment No. 1 (File No. 024-11920), relating to the shares of common stock was filed by the Company with the U.S. Securities and Exchange Commission (the "SEC") and became qualified on September 28, 2022.  An offering circular (as supplemented) relating to the offering was filed with the SEC, copies of which are available for free by visiting EDGAR on the SEC website at www.sec.gov or may be obtained from the Piper Sandler Equity Capital Markets department at 800-747-3924.

This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, the securities, nor shall there be any offer, solicitation, or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Community Heritage Financial, Inc.

Community Heritage Financial, Inc. is the parent company of Middletown Valley Bank.  Middletown Valley Bank provides personal and business banking services, as well as mortgage lending services through its wholly owned subsidiary, Millennium Financial Services, Inc. (Mlend).  Originating in Middletown, Maryland in 1908, today the Bank operates offices in the Maryland counties of Frederick, Washington, Garrett and Anne Arundel, and Franklin County, Pennsylvania. For more information, visit www.communityheritageinc.com or www.mvbbank.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws.  Forward-looking statements can generally be identified by the use of forward- looking terminology such as "believes," "expects," "intends," "may," "will," "should," "anticipates" or similar terminology.  Such statements are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  Potential risks and uncertainties include, but are not limited to, changes in interest rates, stock market liquidity, deposit flows, loan demand and real estate values, as well as changes in economic, competitive, governmental, regulatory, technological and other factors which may affect the Company specifically, its existing and target market areas or the banking industry in general.  The realization or occurrence of these risks or uncertainties could cause actual results to differ materially from those addressed in the forward-looking statements.  The statements in this press release are made as of the date of this release.  The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as required by law.

Investor Relations Contact:

Community Heritage Financial, Inc.
Robert E. (BJ) Goetz, Jr.
President & Chief Executive Officer
301-371-3055

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/community-heritage-financial-inc-announces-closing-of-public-offering-of-common-stock-under-regulation-a-301639419.html

SOURCE Community Heritage Financial, Inc.

FAQ

What are the details of Community Heritage Financial's public offering?

Community Heritage Financial closed a public offering of 600,000 shares at $21.00 per share, generating approximately $12.6 million in gross proceeds.

What will Community Heritage Financial do with the proceeds from the stock offering?

The proceeds from the offering are expected to enhance the company's liquidity and support its banking operations.

Is there any risk of dilution for existing shareholders after the new stock issuance?

Yes, the issuance of 600,000 new shares could lead to dilution of existing shareholders' ownership.

Who managed the public offering for Community Heritage Financial?

Piper Sandler acted as the sole manager for the public offering.

When was the offering statement qualified by the SEC?

The offering statement was qualified by the SEC on September 28, 2022.