Carver Bancorp shareholder Dream Chasers raises offer to $3.25 per share

Carver Bancorp shareholder Dream Chasers Capital, Carver Bancorp’s largest minority shareholder, issued a statement encouraging investors to advocate for the bank to accept its improved $3.25 per share offer-an over 100% premium to the current stock price. The statement says, among other things: “Carver Bancorp, the largest African American bank in the U.S, has a stock price of $1.47 share and a market capitalization of $7M…Over the past few years, under current management, the bank has been losing money, losing deposits, over concentrated in commercial real estate and has a stock price down over 80% for many shareholders…We encourage shareholders-retail and institutional-to demand a change of control…On Oct 27, 2023, Dream Chasers sent a follow up letter to Carver that amongst many things: reiterated our initial $3 a share offer for a $35% stake. We have now publicly raised our offer to $3.25 per share…Offer a severance package to current management and the board to ensure an amicable change of control…While we were waiting for a date, Carver initiated an 8-K filing and press release outlining its progress and plans for growth…Most of these plans outlined in the bank’s filing are not new and have been promised for years but never executed on…In its 8-K filing, the bank mentions a milestone of raising $40 million in new capital since 2019. With the bank’s current market capitalization, investors have seen a negative return on that $40m capital. Dream Chasers and its partners intend to be creators not destroyers of capital…With our revised $3.25 a share offer, Carver’s board of directors has a fiduciary responsibility to shareholders to act in their best interest nor self interest..In light of the historical underperformance of current management and board, shareholders should continue to be vigilant in preventing any self-serving, dilutive, anti-takeover actions or enact poison-pill bylaws-to the detriment of shareholders and communities of color “.