Global Medical REIT Inc. Commences Common Stock Public Offering

Rhea-AI Summary

Global Medical REIT Inc. (NYSE:GMRE) announced an underwritten public offering of 7,500,000 shares of common stock. The offering is subject to market conditions, with an option for underwriters to purchase an additional 1,125,000 shares. Proceeds will be used to reduce credit facility debt, fund acquisitions, and for general corporate purposes. J.P. Morgan, Baird, and BMO Capital Markets are the joint book-running managers. The offering follows the Company's SEC shelf registration effective June 17, 2020.

Positive

• Proceeds intended for debt repayment and acquisitions could strengthen financial position.
• Joint book-running managers include reputable firms, enhancing credibility.

Negative

• Potential dilution for existing shareholders due to the new share offering.

Global Medical REIT Inc. (NYSE:GMRE) (the “Company”) today commenced an underwritten public offering (the “Offering”) of 7,500,000 shares of its common stock, par value $0.001 per share, subject to market and other conditions. The Company expects to grant the underwriters a 30-day option to purchase an additional 1,125,000 shares of common stock being offered in the Offering. 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, Baird and BMO Capital Markets are serving as the joint book-running managers for the Offering. KeyBanc Capital Markets is serving as the passive book-runner for the Offering.

The Offering is being made 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 preliminary 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; Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 East Wisconsin Avenue, Milwaukee, WI 53202, telephone: (800) 792-2473; BMO Capital Markets Corp., Attention: Equity Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036, telephone: 800-414-3627; or KeyBanc Capital Markets Inc., 127 Public Square, 4^th Floor, Cleveland, OH 44114, Attention: Equity Syndicate, telephone: 800-859-1783.

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. There can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering.

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 success of the Offering, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210315005776/en/

FAQ

What is the size of the offering by Global Medical REIT Inc. (GMRE)?

Global Medical REIT Inc. (GMRE) is offering 7,500,000 shares of common stock, with an option for underwriters to purchase an additional 1,125,000 shares.

What will the proceeds from GMRE's offering be used for?

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

Who are the underwriters for GMRE's public offering?

The underwriters include J.P. Morgan, Baird, and BMO Capital Markets.

What is the ticker symbol for Global Medical REIT?

The ticker symbol for Global Medical REIT is GMRE.

When was GMRE's shelf registration statement declared effective?

The shelf registration statement for GMRE was declared effective on June 17, 2020.