On June 28, 1938, the Can-Am and IHL formally merged into a single league under the IAHL name. One of the first acts of the newly merged league, which became the American Hockey League in 1940, was to grant an expansion franchise to the Hershey Bears Hockey Club, which at the time still owned and operated the EAHL Hershey Bears, the then three-time regular season champions of that league. The new Bears took the Bisons' place in the IAHL's West Division, allowing the IAHL to play a balanced schedule for the first time in over two years. While the new Bears began play in the IAHL in 1938, the hockey club also continued to operate an EAHL team, the Hershey Cubs, for one more season before leaving that league altogether. In 1977 Hershey became the only original AHL hockey club to have continuously iced a team in the same city since the league's inaugural season as a fully merged league when the Rhode Island Reds franchise was sold and moved to New York state as the Binghamton Dusters after the 1976–77 campaign.