Ancora Issues Open Letter to Middlefield Banc Corp. Shareholders

Ancora Issues Open Letter to Middlefield Banc Corp. Shareholders
CANNANNEW REPORT

Highlights the Board’s Poor Succession Planning, Abysmal Corporate Governance and Track Record of Presiding Over Financial Underperformance Urges the Board to Initiate a Credible Sale Process and Promptly Engage with Potential Suitors CLEVELAND–(BUSINESS WIRE)–Ancora Holdings Group, LLC (together with its affiliates, “Ancora” or “we”), the largest shareholder of Middlefield Banc Corp. (NASDAQ: MBCN) (“MBCN,” the “Bank” or the “Company”), today issued the following open letter to shareholders regarding the Company’s 2022 Annual Meeting of Shareholders. *** April 18, 2022 Fellow Shareholders, Ancora Holdings Group, LLC (together with its affiliates, “Ancora” or “we”) is the largest stockholder of Middlefield Banc Corp. (NASDAQ: MBCN) (“MBCN,” the “Bank” or the “Company”), beneficially owning approximately 7.8% of the Company’s outstanding common stock. Ancora is a long-term shareholder of the Company due to our belief that MBCN has traded, and continues to trade, at a persistent discount relative to the Company’s intrinsic value. During our five-plus-year holding period, we have consistently communicated to the Company, along with shareholders, our belief that running a legitimate sale process to sell the Bank represents the best risk-adjusted outcome for all stakeholders. In our view, the Board, in response, has been consistent in its resolve to remain entrenched and do little to improve shareholder value. We estimate MBCN could be worth $36-$38 per share if the Company were sold based on precedent transaction comps using a range of 1.65x – 1.75x TBV multiple.1 These transaction comps include companies that were previously a part of MBCN’s compensation peer group that were acquired at attractive valuations representing a significant premium to MBCN’s current share price. We find it difficult to believe that the Company’s execution of its current strategic plan can achieve that type of return for shareholders (over a reasonable holding period), especially given the heightened risk of economic turmoil.…

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Source : Ancora Issues Open Letter to Middlefield Banc Corp. Shareholders

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