CIM Commercial Trust Corporation Raises $78.8 million in Rights Offering

Rhea-AI Summary

CIM Commercial Trust Corporation (CMCT) announced the successful completion of its rights offering, which concluded on June 23, 2021. The offering attracted subscription requests for 8,521,589 shares at a price of $9.25 each, raising approximately $78.8 million in gross proceeds. The shares are expected to be issued by June 28, 2021. CMCT focuses on acquiring and operating Class A office assets in major U.S. metropolitan areas, primarily in Los Angeles and the San Francisco Bay Area.

Positive

• Raised approximately $78.8 million through rights offering.
• Successful subscription for 8,521,589 shares, indicating strong investor interest.

Negative

• None.

CIM Commercial Trust Corporation (NASDAQ: CMCT and TASE: CMCT‑L) (“we”, “our”, “CMCT”, “CIM Commercial”, or the “Company”) announced the final results of its rights offering, which expired at 4:00 p.m., New York Time, on June 23, 2021.

The Company received subscription requests (including over-subscription requests) in respect of 8,521,589 shares of its common stock at a subscription price of $9.25 per share. Accordingly, the Company raised aggregate gross proceeds of approximately $78.8 million in the rights offering. The Company expects to issue the 8,521,589 shares of its common stock subscribed for in the rights offering on or about June 28, 2021.

About CIM Commercial

CIM Commercial is a real estate investment trust that primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States. Its properties are primarily located in Los Angeles and the San Francisco Bay Area. CIM Commercial 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.cimcommercial.com).

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the rights offering, including statements containing the words “will,” “expect,” and words of similar import. For a list and description of the risks and uncertainties inherent in forward-looking statements, see the Annual Report on Form 10-K (as amended) filed by the Company in respect of the fiscal year ended December 31, 2020, and the prospectus supplement relating to the rights offering filed by the Company with the SEC on June 10, 2021. Forward-looking statements are not guarantees of performance or results and speak only as of the date such statements are made. CIM Commercial undertakes no obligation to publicly update or release any revisions to its forward-looking statements, whether to reflect new information, future events, changes in assumptions or circumstances or otherwise, except as required by law.

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FAQ

What is the outcome of CIM Commercial's rights offering?

CIM Commercial raised approximately $78.8 million by successfully selling 8,521,589 shares at $9.25 each.

When will CIM Commercial issue the new shares from the rights offering?

The shares subscribed for in the rights offering are expected to be issued on or about June 28, 2021.

What type of properties does CIM Commercial focus on?

CIM Commercial primarily acquires and operates Class A and creative office assets in major U.S. metropolitan communities.

What is the subscription price for CIM Commercial's rights offering?

The subscription price for the rights offering was set at $9.25 per share.

When did CIM Commercial's rights offering expire?

The rights offering expired on June 23, 2021, at 4:00 p.m. New York Time.