CBM Bancorp Inc. filed a registration statement for an offering related to the conversion of Baltimore-based Banks of the Chesapeake MHC from the mutual to the stock form of organization.
CBM Bancorp is offering up to 3,680,000 shares of common stock at $10.00 per share on a best-efforts basis. It may sell up to 4,232,000 common shares, because of demand for the shares or changes in market conditions without resoliciting subscribers. A minimum of 2,720,000 shares must be sold to complete the offering.
The company will offer the common shares in a subscription offering to eligible depositors and tax-qualified employee benefit plans of Chesapeake Bank of Maryland, a unit of Banks of the Chesapeake. Should those shares remain unsold in the subscription offering, the company may offer them to general public in a community offering that gives preference to residents of the communities served by Chesapeake Bank of Maryland. The company may also offer shares for sale in a syndicated offering.
CBM Bancorp intends to invest between $12.9 million and $17.7 million of the net proceeds of the offering in Chesapeake Bank of Maryland. It will use the remaining proceeds to invest in short-term investments and for general corporate purposes.
The company's common shares are expected to be listed on the Nasdaq Capital Market under the symbol CBMB upon completion of the offering.
Raymond James & Associates Inc. will assist in selling the shares in the subscription and community offerings, and will serve as sole manager for any syndicated offering.
