Medalist Diversified REIT Announces Pricing of $12.0 Million Public Offering of Common Stock

Rhea-AI Summary

Medalist Diversified REIT (NASDAQ: MDRR) has announced a public offering of 8,000,000 shares of its common stock, priced at $1.50 per share, totaling approximately $12 million in gross proceeds. The offering is set to close on or about April 13, 2021, pending customary conditions. The net proceeds will be used for acquiring additional properties and general corporate purposes. The offering includes a 45-day option for underwriters to buy up to 1,200,000 additional shares. This strategic move aims to bolster the company's capacity in the Southeast U.S. commercial real estate market.

Positive

• The offering aims to raise approximately $12 million to acquire additional properties.
• The potential expansion into further commercial real estate could enhance long-term growth.

Negative

• The issuance of new shares may lead to shareholder dilution.
• Market reactions to stock offerings can be unpredictable, potentially leading to a decline in stock price.

Medalist Diversified REIT (NASDAQ: MDRR) (the “Company” or “Medalist”), a Virginia-based real estate investment trust that specializes in acquiring, owning and managing value-add commercial real estate in the Southeast region of the U.S., today announced the pricing of a public offering of 8,000,000 shares of its common stock at a price to the public of $1.50 per share, for a total of approximately $12.0 million in gross proceeds. Shares of the Company’s common stock trade on the Nasdaq Capital Market under the ticker symbol “MDRR.” The offering is expected to close on or about April 13, 2021, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from this offering to acquire additional properties, for working capital, for general corporate purposes. The Company has granted the underwriters a 45-day option to purchase up to 1,200,000 additional shares of common stock to cover over allotments, if any.

Kingswood Capital Markets, division of Benchmark Investments, Inc. is acting as sole bookrunning manager for the offering. Revere Securities LLC, R.F. Lafferty & Co., Inc. and Spartan Capital Securities LLC are acting as co-managers for the offering.

The offering of these securities will be made only by means of a prospectus. A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission.

The offering is being conducted pursuant to the Company's registration statement on Form S-11 (File No. 333-254504), as amended, previously filed with and subsequently declared effective by the Securities and Exchange Commission (“SEC”). A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov. Electronic copies of the final prospectus relating to this offering, when available, may be obtained from Kingswood Capital Markets, division of Benchmark Investments Inc., 17 Battery Place, Suite 625, New York, NY 10004, Attention: Syndicate Department, or via email at syndicate@kingswoodcm.com or telephone at (212) 404-7002.

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

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing value-add commercial real estate in the Mid-Atlantic and Southeast regions. The Company’s strategy is to focus on value-add and opportunistic commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions. The Company seeks to maximize operating performance of current properties by utilizing a hands-on approach to property management while monitoring the middle market real estate markets in the southeast for acquisition opportunities and disposal of properties as considered appropriate. For more information on Medalist, please visit the Company website at https://www.medalistreit.com.

Forward Looking Statements

This press release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward looking statements are statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur, including, without limitation, with respect to the completion of the public offering on the terms described or at all. In addition, the underwriters’ option to purchase additional shares may imply that this option will be exercised; however, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the prospectus dated April 7, 2021, and in the Company’s subsequent annual and periodic reports and other documents filed with the SEC, copies of which are available on the SEC’s website, www.sec.gov.

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FAQ

What is the purpose of Medalist Diversified REIT's public offering?

The public offering aims to raise funds for acquiring additional properties and for general corporate purposes.

What is the size and pricing of the public offering by MDRR?

Medalist Diversified REIT is offering 8,000,000 shares at a price of $1.50 per share, totaling approximately $12 million.

When is the expected closing date for the MDRR offering?

The offering is expected to close on or about April 13, 2021, subject to customary conditions.

Is there an option for underwriters to purchase additional shares in the MDRR offering?

Yes, underwriters have a 45-day option to buy up to 1,200,000 additional shares to cover over allotments.