Update on Lake Shore Bancorp's Transition to Stock Form
Lake Shore Bancorp's Strategic Advancement
Lake Shore Bancorp, Inc., recognized as Lake Shore Federal Bancorp, is making headlines with significant updates regarding its transition to stock form. This strategic shift, aimed at optimizing its operational framework, is expected to conclude promptly, marking a notable milestone in the company’s journey.
Regulatory Approvals Secured
The journey has reached an essential turning point as Lake Shore Bancorp announces the receipt of all necessary regulatory approvals to finalize the conversion process. This initiative involves transitioning from Lake Shore, MHC, a mutual holding company, to a stock form, fundamentally altering the structure from which the bank operates.
Details of the Stock Offering
This transformation includes a related offering, where the company plans to engage in a stock sale to bolster its capital base. As per the latest findings, roughly 4,950,460 shares of common stock will be up for grabs at a base price of $10.00 per share, bringing the anticipated total proceeds to approximately $49.5 million. This offering allows eligible shareholders to subscribe fully, reflecting the company's commitment to its stakeholders.
Anticipated Closing Dates
The expected date for the closure of this groundbreaking conversion is rapidly approaching. Closing is anticipated to occur after business hours, setting the stage for trading to commence on the Nasdaq Global Market. The company’s shares will be earmarked with the ticker symbol "LSBK," making a grand entry three days later.
Impact on Current Shareholders
The proposed conversion intricately ties the future of existing shareholders to the evolving framework. All outstanding shares of the current holding will convert to shares of the new stock-holding entity, maintaining the ownership percentage to ensure that former shareholders enjoy similar stakes post-conversion.
Streamlined Shareholder Transition
In light of the conversion completion, stockholders holding shares in different formats will experience a seamless transition. For shareholders with certificated stock, a letter detailing the conversion method will be dispatched shortly after the conversion date. Eligible investors will witness their stock accounts instantly reflect new shares along with any cash owed for fractional shares.
The Role of Legal and Marketing Guidance
Legal guidance during this transition has been navigated by Luse Gorman, PC, ensuring compliance with regulations throughout the process. Meanwhile, Raymond James & Associates, Inc. has played a pivotal role as the marketing agent for the stock offering, tapping into its expertise to facilitate a smooth rollout.
About Lake Shore Bancorp
Lake Shore Federal Bancorp serves as the mid-tier holding company for Lake Shore Savings Bank, a well-established community-focused financial institution. Engaging with ten branches across Western New York, the bank emphasizes a comprehensive suite of retail and commercial banking services designed to meet diverse community needs. The institution is committed to providing high-quality, accessible banking solutions to its clientele.
Investor Relations and Contact Information
For inquiries, investors can reach out to Kim C. Liddell, President, CEO, and Director of Lake Shore Bancorp. They can connect with her directly at the company’s headquarters, ensuring that stakeholders can engage effectively with the company's leadership.
Frequently Asked Questions
What is Lake Shore Bancorp's ticker symbol?
Lake Shore Bancorp's shares will trade under the ticker symbol "LSBK" on the Nasdaq Global Market.
When will the conversion process be completed?
The conversion process is expected to be finalized after business hours on July 18, 2025.
How many shares will be available in the stock offering?
A total of approximately 4,950,460 shares of common stock will be made available at a price of $10.00 each.
What will happen to existing shareholders?
Existing shareholders will convert their stock based on an exchange ratio, allowing them to maintain their ownership percentage in the new entity.
Who should investors contact for more information?
Investors can reach out to Kim C. Liddell for information regarding the stock offering and corporate inquiries.
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