Delanco-based Delanco Bancorp Inc., holding company for Delanco Federal Savings Bank, announced Wednesday new it has received orders to purchase a total of 525,423 shares of common stock in the offering being conducted in connection with the second-step conversion of Delanco Federal Savings Bank. The conversion and offering are expected to be completed on October 16, 2013.
According to the announcement, number of shares is slightly below the midpoint of the offering range. The closing of the transaction is subject to the satisfaction of customary closing conditions. As a result of the conversion and offering, Delanco MHC and old Delanco Bancorp Inc. will cease to exist and new Delanco Bancorp Inc., the state chartered corporation formed to facilitate the conversion, will become the parent holding company of Delanco Federal Savings Bank and will be wholly owned by public shareholders.
The subscription will include shares purchased by Delanco Federal Savings Bank's employee stock ownership plan, at $8.00 per share for gross proceeds of $4.2 million. Each existing share of old Delanco Bancorp Inc. will be converted into the right to receive .5711 of a share of new Delanco Bancorp Inc. common stock. The exchange ratio ensures that, after the conversion and offering, the public shareholders will maintain approximately the same ownership interest in new Delanco Bancorp Inc. as they owned in the original Delanco Bancorp Inc. Delanco common stock will continue to trade on the OTCQB Marketplace under the trading symbol DLNO, the company said in a statement.