BELLEVUE CAPITAL PARTNERS, LLC ANNOUNCES FINAL RESULTS OF TENDER OFFER FOR SHARES OF AMERICAN STRATEGIC INVESTMENT CORP.

Rhea-AI Summary

Bellevue Capital Partners, has concluded its tender offer for shares of American Strategic Investment Co. (NYSE: NYC). The offer, which expired on July 15, 2024, sought to purchase up to 125,000 shares at $11.00 per share. The tender offer was oversubscribed, with 179,219 shares properly tendered. As a result, 125,000 shares (approximately 4.85% of ASIC's outstanding shares) were accepted for purchase on a pro rata basis, for a total cost of about $1,375,000 in cash. Computershare Trust Company, N.A., the depositary, will promptly issue payment for the accepted shares and return any shares not purchased in the offer.

Positive

• Successful completion of the tender offer
• Oversubscription indicates strong shareholder interest
• $1,375,000 cash return to participating shareholders

Negative

• Potential reduction in ASIC's public float by 4.85%
• Not all tendered shares were accepted due to oversubscription

Insights

Financial Analyst

Bellevue Capital Partners' tender offer for American Strategic Investment Corp. (ASIC) concluded with an oversubscription, indicating high investor interest. The offer price was set at $11.00 per share and Bellevue purchased the maximum 125,000 shares, which is about 4.85% of ASIC's outstanding shares as of May 2, 2024. This move cost Bellevue $1,375,000, not including fees and taxes.

From a financial perspective, this tender offer can be seen as an indicator of confidence in ASIC. An oversubscribed tender offer suggests that the market views the offered price as attractive. For existing shareholders, the reduced number of outstanding shares could mean an increase in their share value, assuming constant market capitalization.

However, it's important to consider the financial health of ASIC. The repurchase may indicate that ASIC has sufficient cash reserves or a solid financial standing to return value to shareholders through buybacks. Conversely, it might also raise questions if the company is not utilizing the funds for growth or other strategic investments.

In the short term, this action could provide a positive boost to the stock price due to decreased supply and potential signals of underlying value. Long-term implications will depend on ASIC's future financial performance and market conditions.

Market Research Analyst

The tender offer's oversubscription is a critical market signal. It suggests that investors are not only satisfied but eager to sell their shares at the offered price, indicating they might believe this price is a fair valuation or perhaps even a premium. When the number of shares tendered exceeds the quantity sought, it can indicate differing perceptions of the company's future among investors.

In terms of market perception, this could be a nuanced sign. On one hand, the oversubscription shows a readiness of shareholders to cash out at $11.00 per share, which might imply a ceiling for the stock price in the near term. On the other hand, the fact that Bellevue went forward with the purchase demonstrates their commitment to their investment strategy in ASIC, possibly aiming for long-term gains.

Investors should keep an eye on further market activities and whether Bellevue announces additional plans regarding their position in ASIC. The broader investor sentiment towards ASIC and its capability to deliver on future operational milestones remains a critical factor to watch.

NEW YORK, July 16, 2024 /PRNewswire/ -- Bellevue Capital Partners, LLC ("Bellevue") announced today the final results of its tender offer to purchase for cash up to 125,000 shares of American Strategic Investment Co. (NYSE: NYC) ("ASIC") common stock at a price of $11.00 per share (the "Tender Offer"), which expired at 5:00 p.m., New York City time, on July 15, 2024.

Based on the final count by Computershare Trust Company, N.A., the depositary for the tender offer, 179,219 shares of ASIC's common stock were properly tendered and not properly withdrawn.

The tender offer was oversubscribed. Pursuant to the terms of the offer, 125,000 shares of ASIC's common stock were accepted for purchase on a pro rata basis, for an aggregate cost of approximately $1,375,000, in cash, less any fees, expenses or applicable withholding taxes relating to the tender offer. The repurchased shares represent approximately 4.85% of ASIC's shares outstanding as of May 2, 2024.

Computershare Trust Company, N.A., the depositary for the tender offer, will promptly issue payment for the shares of ASIC common stock validly tendered and accepted for purchase in the tender offer, and will return all other shares tendered and not purchased in the tender offer.

About Bellevue Capital Partners, LLC

Bellevue is a leading, diversified investment, asset management and operating platform and the sole member of AR Global Investments, LLC, the parent company to the advisor and property manager of ASIC.

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SOURCE Bellevue Capital Partners, LLC

FAQ

What was the final result of Bellevue Capital Partners' tender offer for American Strategic Investment Co. (NYSE: NYC) shares?

The tender offer was oversubscribed, with 179,219 shares properly tendered. Bellevue accepted 125,000 shares for purchase at $11.00 per share, representing about 4.85% of ASIC's outstanding shares, for a total cost of approximately $1,375,000.

When did the tender offer for American Strategic Investment Co. (NYSE: NYC) shares expire?

The tender offer expired at 5:00 p.m., New York City time, on July 15, 2024.

How many shares of American Strategic Investment Co. (NYSE: NYC) did Bellevue Capital Partners initially seek to purchase?

Bellevue Capital Partners initially sought to purchase up to 125,000 shares of American Strategic Investment Co. (NYSE: NYC) in the tender offer.

What happens to the American Strategic Investment Co. (NYSE: NYC) shares that were tendered but not accepted in the offer?

Computershare Trust Company, N.A., the depositary for the tender offer, will return all shares tendered and not purchased in the tender offer to the respective shareholders.