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

Rhea-AI Summary

Community Heritage Financial, Inc. (OTC PK: CMHF) has priced its public offering of 600,000 shares of common stock at $21.00 per share, aiming for gross proceeds of approximately $12.6 million. After deducting expenses, net proceeds are expected to be around $11.4 million. The offering will be conducted through Piper Sandler & Co., with a potential additional 90,000 shares available for over-allotments. The offering is scheduled to close on October 3, 2022, following SEC qualification on September 28, 2022.

Positive

• Offering of 600,000 shares may strengthen the company's capital position.
• Expected net proceeds of approximately $11.4 million can be utilized for business expansion or operational improvement.

Negative

• Dilution of existing shares may occur due to the new offering.
• Market reaction to the offering price and potential share dilution impacts could negatively affect shareholder value.

MIDDLETOWN, Md., Sept. 29, 2022 /PRNewswire/ -- Community Heritage Financial, Inc. (the "Company") (OTC PK: CMHF), the parent company of Middletown Valley Bank (the "Bank"), today announced the pricing of its public offering of 600,000 shares of common stock under Regulation A, Tier 2 at a public offering price of $21.00 per share.  The offering is expected to result 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.

The Company is offering the shares of common stock through an underwriter, Piper Sandler & Co.  The underwriter will have 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 offering is expected to close on October 3, 2022, subject to customary closing conditions.

The shares of common stock will be issued pursuant to an offering statement on Form 1-A, as amended by the Post-Qualification Amendment No. 1 (File No. 024-11920) filed by the Company with the U.S. Securities and Exchange Commission (the "SEC"), which was qualified by the SEC on September 28, 2022.  The offering is being made only by means of an offering circular, 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

 

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SOURCE Community Heritage Financial, Inc.

FAQ

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

The company is offering 600,000 shares at $21.00, aiming for gross proceeds of $12.6 million, with an expected net of $11.4 million.

When is the expected closing date for the stock offering?

The offering is expected to close on October 3, 2022.

Who is managing Community Heritage Financial's stock offering?

The offering is being managed by Piper Sandler & Co.

What is the impact of the stock offering on shareholders?

Existing shareholders may experience dilution due to the issuance of new shares.

How can investors find more information about the stock offering?

Investors can access the offering circular via the SEC's EDGAR database.