Global Medical REIT Inc. Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Global Medical REIT Inc. (NYSE:GMRE) has announced a public offering of 7,500,000 shares of common stock priced at $13.30 per share, aiming to raise gross proceeds of $99,750,000. The funds will be utilized for repaying debt, funding acquisitions, and general corporate purposes. An additional 1,125,000 shares may be purchased underwriters within 30 days. The offering is set to close on March 18, 2021, pending customary conditions. The shares will be issued under a shelf registration statement effective since June 17, 2020.

Positive

• Gross proceeds of $99,750,000 can strengthen the company's financial position.
• Funds will be allocated towards repaying debt, potentially reducing interest expenses.
• Additional funds may support further acquisitions to grow the company.

Negative

• Issuing new shares may dilute existing shareholders' equity.
• Market reaction to the dilution could negatively impact stock price.

Global Medical REIT Inc. (NYSE:GMRE) (the “Company”) today announced that it has priced an underwritten public offering (the “Offering”) of 7,500,000 shares of its common stock, par value $0.001 per share, at a price to the public of $13.30 per share for gross proceeds of $99,750,000, before deducting underwriting discounts and commissions and offering expenses payable by the Company. The Company has also granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock. The Company intends to use the net proceeds from the Offering to repay a portion of the outstanding indebtedness under its credit facility, to fund acquisitions and for other general corporate purposes.

J.P. Morgan, BMO Capital Markets, Stifel, Wells Fargo Securities and Baird are serving as the joint bookrunning managers for the Offering. KeyBanc Capital Markets and Truist Securities are serving as bookrunners for the Offering. B. Riley Securities, Berenberg, Compass Point, D.A. Davidson & Co., Janney Montgomery Scott and Ramirez & Co., Inc. are serving as co-managers for the Offering.

The Offering is expected to close on March 18, 2021, subject to customary closing conditions. All of the shares of common stock will be issued pursuant to the Company's shelf registration statement, which was declared effective by the U.S. Securities and Exchange Commission ("SEC") on June 17, 2020. Copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, from the SEC's website at www.sec.gov or by contacting: J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 1-866-803-9204; BMO Capital Markets Corp., Attention: Equity Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036, telephone: 1-800-414-3627; Stifel, Nicolaus & Company, Incorporated, One South Street, 15^th Floor, Baltimore, MD 21202, Attention: Syndicate Department, fax: 1-443-224-1273; Wells Fargo Securities, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, New York, 10001, telephone: 1-800-326-5897; Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 East Wisconsin Avenue, Milwaukee, WI 53202, telephone: 1-800-792-2473; KeyBanc Capital Markets Inc., 127 Public Square, 4^th Floor, Cleveland, OH 44114, Attention: Equity Syndicate, telephone: 1-800-859-1783; or Truist Securities, Inc., 3333 Peachtree Road NE, 9th Floor, Atlanta, GA 30326, Attention: Prospectus Department, telephone: 1-800-685-4786.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these shares or any other securities in any state in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the securities laws of any state.

About Global Medical REIT Inc.

Global Medical REIT Inc. is a net-lease medical office REIT that acquires purpose-built specialized healthcare facilities and leases those facilities to strong healthcare systems and physician groups with leading market share.

Forward-Looking Statements

This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or Company management’s good faith belief as of that time with respect to future events. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including, without limitation, the use of proceeds of the Offering, and the satisfaction of all conditions to, and the timely closing of, the Offering. These risks and uncertainties are described in greater detail in the Company’s filings with the SEC, including, without limitation, the Company’s annual and periodic reports and other documents filed with the SEC. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The Company undertakes no obligation to update these statements after the date of this release.

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FAQ

What is the amount raised in Global Medical REIT's stock offering on March 18, 2021?

Global Medical REIT raised gross proceeds of $99,750,000 through the offering of 7,500,000 shares.

What will the proceeds from Global Medical REIT's stock offering be used for?

The proceeds will be used to repay debt, fund acquisitions, and for general corporate purposes.

How many additional shares can underwriters purchase in the offering?

Underwriters have the option to purchase up to an additional 1,125,000 shares.

When is the expected closing date for GMRE's public offering?

The offering is expected to close on March 18, 2021.

What is the share price set for GMRE's public offering?

The shares are priced at $13.30 each for the public offering.