Gouverneur Bancorp Inc (OTCMKTS:GOVB) Stock Jumps After Adoption of Plan of Conversion and Reorganization
Gouverneur Bancorp Inc (OTCMKTS:GOVB), a majority-owned subsidiary of Cambray Mutual Holding Company and parent company for Gouverneur Savings and Loan Association, on May 22, 2023, announced that the Board of Directors o both MHC and the Bank, have adopted the Reorganisation and Plan of Conversion.
Gouverneur Bancorp, Inc. Announces Adoption of Plan of Conversion and Reorganization
MHC will be selling the majority ownership in the firm both to the Bank and the public, which is presently a mutual holding company structure. It will then reorganize to a complete public stock holding company as a “second step” conversion.
The Bank will then be a wholly owned subsidiary of a new holding company. Shares of common stock of the firm held by people other than MHC, which is currently about 35.5% of its outstanding shares, would be converted. On the other hand, shares of common stock held by MHC, which is about 64.5% of outstanding shares will be cancelled.
In the offering, Bank depositors with qualifying deposits as on September 30, 2021, will have first-priority non-transferable subscription rights. The second step conversion would be subject to approval by some borrowers and depositors. A prospectus and other materials on the Plan of Conversion, offering details as well as financial information about the firm would be shared with stockholders.
Kilpatrick Townsend & Stockton LLP is legal counsel to the MHC, the bank, and the firm while Keefe, Bruyette & Woods, Inc, a Stifel Company, will be the marketing agent for the stock offering.
