CMCT’s Redemption of its Series L Preferred Stock
DALLAS--(BUSINESS WIRE)--Jan 9, 2023--
CMCT (NASDAQ: CMCT and TASE: CMCT-L) Creative Media & Community Trust Corporation (“CMCT”) previously announced that it will redeem all outstanding shares of its Series L Preferred Stock in cash on January 25, 2023 at its stated value, USD 28.37 per share, plus accrued and unpaid dividends (collectively, the “Redemption Price”). There are 2,951,876 shares of Series L Preferred Stock outstanding as of the date hereof.
As required by the terms of the Series L Preferred Stock, CMCT will convert the Redemption Price from USD into ILS on January 19, 2023. CMCT will announce the result of the conversion on its website.
All holders of record of the Series L Preferred Stock on January 19, 2023 will receive the payment of the Redemption Price on January 25, 2023 in ILS, converted from USD as described in the preceding paragraph. Holders of Series L Preferred Stock who hold their shares through TASE members will receive the payment of the Redemption Price from their respective TASE members. Holders of Series L Preferred Stock who do not hold their shares of Series L Preferred Stock through a TASE member (i.e., holders of Series L Preferred Stock who hold their shares through U.S. broker dealers) must contact their broker dealers immediately and provide them with instructions on where the Redemption Price in ILS should be sent (and/or provide some other alternative instructions).
Pursuant to the terms of the Series L Preferred Stock, dividends ceased to accrue on the Series L Preferred Stock on December 31, 2022 (i.e., the Distribution Cutoff Date (as defined in the Articles Supplementary of the Series L Preferred Stock)).
In connection with the redemption in full of the Series L Preferred Stock in cash, CMCT notified Nasdaq on January 9, 2023 that it intends to delist the Series L Preferred Stock from Nasdaq by filing Form 25 with the U.S. Securities & Exchange Commission on January 19, 2023. It is expected that trading of the Series L Preferred Stock on Nasdaq will cease on that day. As shares of the Series L Preferred Stock will be redeemed in full, CMCT has not arranged for listing and/or registration of the Series L Preferred Stock on another national securities exchange or for quotation of the Series L Preferred stock in a quotation medium (as defined in § 240.15c2-11).
Creative Media & Community Trust Corporation (“CMCT”) is a real estate investment trust that seeks to own, operate and develop premier multifamily and creative office assets in vibrant and emerging communities throughout the United States. CMCT is a leader in creative office, acquiring and developing properties catering to rapidly growing industries such as technology, media and entertainment. CMCT seeks to apply the expertise of CIM to the acquisition, development, and operation of top-tier multifamily properties situated in dynamic markets with similar business and employment characteristics to its creative office investments. CMCT also owns one hotel in Northern California and a lending platform that originates loans under the Small Business Administration (“SBA”)’s 7(a) loan program. CMCT is operated by affiliates of CIM Group, L.P., a vertically-integrated owner and operator of real assets with multi-disciplinary expertise and in-house research, acquisition, credit analysis, development, finance, leasing, and onsite property management capabilities. ( www.creativemediacommunity.com ).
This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), which are intended to be covered by the safe harbors created thereby. Such forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “project,” “target,” “expect,” “intend,” “might,” “believe,” “anticipate,” “estimate,” “could,” “would,” “continue,” “pursue,” “potential,” “forecast,” “seek,” “plan,” or “should,” or “goal” or the negative thereof or other variations or similar words or phrases. Such forward-looking statements include, among others, statements about CMCT’s plans and objectives relating to future growth and outlook. Such forward-looking statements are based on particular assumptions that management of CMCT has made in light of its experience, as well as its perception of expected future developments and other factors that it believes are appropriate under the circumstances. Forward-looking statements are necessarily estimates reflecting the judgment of CMCT’s management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include those associated with (i) the scope, severity and duration of the current pandemic of COVID-19, and actions taken to contain the pandemic or mitigate its impact,(ii) the adverse effect of COVID-19 on the financial condition, results of operations, cash flows and performance of CMCT and its tenants and business partners, the real estate market and the global economy and financial markets, among others, (iii) the timing, form, and operational effects of CMCT’s development activities, (iv) the ability of CMCT to raise in place rents to existing market rents and to maintain or increase occupancy levels, (v) fluctuations in market rents, including as a result of COVID-19, (vi) the effects of inflation and higher interest rates on the operations and profitability of CMCT and (vii) general economic, market and other conditions. Additional important factors that could cause CMCT’s actual results to differ materially from CMCT’s expectations are discussed under the section “Risk Factors” in CMCT’s Annual Report on Form 10-K for the year ended December 31, 2021 and in CMCT’s Quarterly Report on Form 10-Q for the period ended September 30, 2022. The forward-looking statements included herein are based on current expectations and there can be no assurance that these expectations will be attained. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond CMCT’s control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements included herein will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by CMCT or any other person that CMCT’s objectives and plans will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made. CMCT does not undertake to update them to reflect changes that occur after the date they are made.
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CONTACT: Media Relations:
Steve Altebrando, 646-652-8473
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: PROFESSIONAL SERVICES OTHER CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE FINANCE CONSTRUCTION & PROPERTY REIT
SOURCE: Creative Media & Community Trust Corporation
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PUB: 01/09/2023 04:03 PM/DISC: 01/09/2023 04:02 PM