Strawberry Fields REIT Establishes an At-The-Market Program To Increase Liquidity And Facilitate Growth
Strawberry Fields REIT (NYSE AMERICAN:STRW) has established an at-the-market (ATM) equity program to enhance its financing flexibility. The program allows the company to issue and sell newly issued common stock to the public, subject to SEC volume limitations. Sales will be conducted through the NYSE at prevailing market prices, with timing and volume determined by the company. The ATM program is capped at $24 million over its lifetime.
The company aims to use the net proceeds to increase stock liquidity and facilitate growth. B. Riley Securities, Inc. and A.G.P. / Alliance Global Partners have been retained as agents for the program. The ATM is established under a prospectus in a Registration Statement on Form S-3, which became effective on August 1, 2024.
Strawberry Fields REIT (NYSE AMERICAN:STRW) ha istituito un programma di equity at-the-market (ATM) per migliorare la flessibilità del suo finanziamento. Il programma consente alla società di emettere e vendere azioni ordinarie di nuova emissione al pubblico, nel rispetto delle limitazioni di volume stabilite dalla SEC. Le vendite saranno effettuate attraverso la NYSE ai prezzi di mercato prevalenti, con tempistiche e volumi determinati dalla società. Il programma ATM è limitato a 24 milioni di dollari durante la sua durata.
La società intende utilizzare il ricavato netto per aumentare la liquidità delle azioni e facilitare la crescita. B. Riley Securities, Inc. e A.G.P. / Alliance Global Partners sono stati scelti come agenti per il programma. L'ATM è stato istituito sotto un prospetto in una Dichiarazione di Registrazione sul Modulo S-3, entrata in vigore il 1 agosto 2024.
Strawberry Fields REIT (NYSE AMERICAN:STRW) ha establecido un programa de capital at-the-market (ATM) para mejorar su flexibilidad financiera. El programa permite a la empresa emitir y vender acciones ordinarias recién emitidas al público, sujetas a las limitaciones de volumen de la SEC. Las ventas se realizarán a través de la NYSE a precios de mercado prevalentes, con el tiempo y el volumen determinados por la empresa. El programa ATM tiene un límite de 24 millones de dólares durante su duración.
La empresa tiene como objetivo utilizar los ingresos netos para incrementar la liquidez de las acciones y facilitar el crecimiento. B. Riley Securities, Inc. y A.G.P. / Alliance Global Partners han sido contratados como agentes para el programa. El ATM se establece bajo un prospecto en una Declaración de Registro en el Formulario S-3, que entró en vigor el 1 de agosto de 2024.
스트로베리 필드 리츠 (NYSE AMERICAN:STRW)는 자금 조달 유연성을 향상시키기 위해 시장에서의 주식(ATM) 프로그램을 수립했습니다. 이 프로그램은 회사가 SEC의 거래량 제한에 따라 일반 새 주식을 대중에게 발행하고 판매할 수 있도록 합니다. 판매는 회사가 결정하는 시기 및 거래량에 따라 NYSE를 통해 현재 시장 가격으로 이루어질 것입니다. ATM 프로그램은 전체 운영 기간 동안 2400만 달러로 제한됩니다.
회사는 순수익을 사용하여 주식 유동성을 증대하고 성장을 촉진하는 것을 목표로 하고 있습니다. B. 라일리 증권, Inc.와 A.G.P. / 얼라이언스 글로벌 파트너스가 이 프로그램의 대리인으로 선정되었습니다. ATM은 2024년 8월 1일 발효된 S-3 양식에 대한 등록 성명서의 전망서에 따라 설정되었습니다.
Strawberry Fields REIT (NYSE AMERICAN:STRW) a établi un programme d'équité at-the-market (ATM) pour améliorer sa flexibilité financière. Ce programme permet à l'entreprise d'émettre et de vendre des actions ordinaires récemment émises au public, sous réserve des limitations de volume fixées par la SEC. Les ventes seront réalisées par le biais de la NYSE aux prix du marché en vigueur, avec un calendrier et un volume déterminés par l'entreprise. Le programme ATM est plafonné à 24 millions de dollars pendant toute sa durée.
L'entreprise vise à utiliser le produit net pour augmenter la liquidité des actions et faciliter la croissance. B. Riley Securities, Inc. et A.G.P. / Alliance Global Partners ont été retenus comme agents pour le programme. L'ATM est établi sous un prospectus dans une Déclaration d'Enregistrement sur le Formulaire S-3, entrée en vigueur le 1er août 2024.
Strawberry Fields REIT (NYSE AMERICAN:STRW) hat ein at-the-market (ATM) Eigenkapitalprogramm eingerichtet, um die Finanzierungsflexibilität zu erhöhen. Das Programm ermöglicht es dem Unternehmen, neu ausgegebene Stammaktien an die Öffentlichkeit zu verkaufen, vorbehaltlich der von der SEC festgelegten Volumenbeschränkungen. Die Verkäufe werden über die NYSE zu den aktuellen Marktpreisen durchgeführt, wobei Zeit und Volumen vom Unternehmen bestimmt werden. Das ATM-Programm ist auf 24 Millionen Dollar während seiner Laufzeit begrenzt.
Das Unternehmen plant, die Nettomittel zu verwenden, um die Liquidität der Aktien zu erhöhen und das Wachstum zu fördern. B. Riley Securities, Inc. und A.G.P. / Alliance Global Partners wurden als Agenten für das Programm beauftragt. Das ATM wird unter einem Prospekt in einer Registrierungsanmeldung auf Formular S-3 etabliert, die am 1. August 2024 in Kraft trat.
- Establishment of ATM program provides additional financing flexibility
- Potential to increase stock liquidity
- Opportunity to facilitate company growth
- $24 million cap on ATM program sales
- Potential dilution of existing shareholders' equity
- Uncertainty in timing and volume of stock sales
- Stock price may be affected by increased supply of shares
Insights
As a financial analyst, I find Strawberry Fields REIT's establishment of an at-the-market (ATM) equity program to be a strategic move with potential implications for investors. The $24 million cap on the program suggests a measured approach to capital raising. This ATM program offers several advantages:
- Increased liquidity: By allowing the company to issue shares at its discretion, it can potentially improve trading volume and stock liquidity.
- Flexibility in capital raising: The ability to sell shares at prevailing market prices provides a nimble way to access capital as needed, potentially at more favorable terms than traditional offerings.
- Growth facilitation: The additional capital can be used to fund expansion or acquisitions, potentially driving future growth.
However, investors should be aware of potential dilution risks. The issuance of new shares could decrease earnings per share if not offset by corresponding growth. It's important to monitor how effectively management deploys the raised capital.
The involvement of reputable firms like B. Riley Securities and A.G.P. / Alliance Global Partners as agents lends credibility to the program. Their market expertise could help in optimizing the timing and pricing of share issuances.
Overall, while the ATM program provides financial flexibility, its success will largely depend on management's execution and market conditions. Investors should closely watch for any significant share issuances and their impact on the company's financial metrics and growth trajectory.
From a market perspective, Strawberry Fields REIT's ATM program introduction is a noteworthy development in the REIT sector. This move aligns with broader industry trends where REITs are seeking flexible capital-raising mechanisms to navigate the current economic landscape.
Key market implications include:
- Market timing advantage: The ATM structure allows STRW to capitalize on favorable market conditions, potentially achieving better pricing than traditional follow-on offerings.
- Investor sentiment indicator: The company's decision to establish this program may signal management's confidence in future growth prospects, which could positively influence investor perception.
- Sector competitiveness: Enhanced financial flexibility could strengthen STRW's position in the competitive REIT market, potentially enabling more agile responses to investment opportunities.
However, it's important to consider the broader market context. With interest rates at elevated levels, the cost of capital for REITs has increased. The success of this ATM program will partly depend on how STRW's stock performs relative to its peers and the overall REIT index.
Investors should also monitor the utilization rate of this program. A high utilization rate could indicate strong growth opportunities, but it might also raise questions about the company's ability to fund growth through operational cash flows.
In conclusion, while the ATM program is a positive tool for capital management, its true value will be determined by how effectively it's employed in the context of market conditions and the company's growth strategy.
From a legal standpoint, Strawberry Fields REIT's ATM program implementation demonstrates compliance with key regulatory requirements:
- SEC Registration: The program is established under a Form S-3 Registration Statement, which has been declared effective by the SEC. This ensures transparency and regulatory oversight.
- Volume Limitations: The company acknowledges SEC-imposed volume limitations, indicating adherence to regulatory guidelines designed to prevent market manipulation.
- Disclosure Compliance: The announcement provides clear information about the program's structure, purpose and potential risks, aligning with SEC disclosure requirements.
The
The engagement of established financial firms as agents adds a layer of credibility and suggests proper due diligence in program execution. However, investors should be aware that these agents' roles are primarily facilitatory and do not constitute investment advice or endorsement.
It's important to note that while the ATM program provides flexibility, it also comes with ongoing compliance responsibilities. The company must ensure continual adherence to NYSE listing rules, SEC reporting requirements and fair disclosure practices throughout the program's duration.
In conclusion, while the legal structure appears sound, investors should remain vigilant. Any deviations from the disclosed terms or regulatory requirements could pose legal risks. As always, careful review of subsequent SEC filings is advisable to stay informed of any material changes or developments related to this program.
SOUTH BEND, IN / ACCESSWIRE / August 2, 2024 / Strawberry Fields REIT, Inc. (NYSE AMERICAN:STRW) (the "Company") announced today that it has established an at-the-market equity program (the "ATM Program"). The ATM Program will allow the Company to issue and sell to the public from time to time, at the Company's discretion, newly issued shares of common stock. Any shares sold in the ATM Program will be subject to volume limitations imposed by the SEC and will be sold through the New York Stock Exchange (the "NYSE").
The ATM Program is expected to provide the Company with additional financing flexibility. The Company intends to use the net proceeds from the ATM Program to increase stock liquidity and facilitate growth.
The volume and timing of sales under the ATM Program, if any, will be determined at the Company's sole discretion. The ATM Program will be effective, unless terminated by the Company or otherwise in accordance with the terms of the At Market Issuance Sales Agreement dated July 11, 2024 (the "Sales Agreement") between the Company and the Agents (as defined below). Shares will be sold in the ATM Program at prevailing market price at the time of the sales. Therefore, prices may vary among purchasers during the period of the distribution. The Sales Agreement limits the amount of sales in the ATM Program to
To facilitate sales in the ATM Program, the Company has retained B. Riley Securities, Inc., and A.G.P. / Alliance Global Partners (collectively, the "Agents").
The ATM Program is being established pursuant to a prospectus contained in a Registration Statement on Form S-3 Registration Statement, which was declared effective by the SEC on August 1, 2024. The Registration Statement is available on the Securities and Exchange Commission's website at www.sec.gov. The Agents will send copies of the Registration Statement and Prospectus via requests made to any of the following individuals:
B. Riley Securities, Inc, 299 Park Avenue, 21st Floor New York, NY 10171 attn: Patrice McNicoll- Pmcnicoll@brileyfin.com or Larry Goldsmith- Lgoldsmith@brileyfin.com. With a copy to: atmdesk@brileyfin.com.
A.G.P./Alliance Global Partners, 590 Madison Avenue New York, NY 10022, attn.: Tom Higgins- Thiggins@allianceg.com. With a copy to: atm@allianceg.com.
About Strawberry Fields REIT
Strawberry Fields REIT, Inc., is a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The Company's portfolio includes 110 healthcare facilities with an aggregate of 12,500+ beds, located throughout the states of Arkansas, Illinois, Indiana, Kentucky, Michigan, Ohio, Oklahoma, Tennessee and Texas. The 110 healthcare facilities comprise 100 skilled nursing facilities, eight assisted living facilities, and two long-term acute care hospitals.
Safe Harbor Statement
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, statements regarding: future financing plans, business strategies, growth prospects and operating and financial performance; expectations regarding the making of distributions and the payment of dividends; and compliance with and changes in governmental regulations.
Words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)" and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: (i) the COVID-19 pandemic and the measures taken to prevent its spread and the related impact on our business or the businesses of our tenants; (ii) the ability and willingness of our tenants to meet and/or perform their obligations under the triple-net leases we have entered into with them, including, without limitation, their respective obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; (iii) the ability of our tenants to comply with applicable laws, rules and regulations in the operation of the properties we lease to them; (iv) the ability and willingness of our tenants to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, as well as any obligations, including indemnification obligations, we may incur in connection with the replacement of an existing tenant; (v) the availability of and the ability to identify (a) tenants who meet our credit and operating standards, and (b) suitable acquisition opportunities, and the ability to acquire and lease the respective properties to such tenants on favorable terms; (vi) the ability to generate sufficient cash flows to service our outstanding indebtedness; (vii) access to debt and equity capital markets; (viii) fluctuating interest rates; (ix) the ability to retain our key management personnel; (x) the ability to maintain our status as a real estate investment trust ("REIT"); (xi) changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs; (xii) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xiii) any additional factors included under "Risk Factors" in our Annual Report Form 10-K dated March 19, 2024, including in the section entitled "Risk Factors" in Item 1A of Part I of such report, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC.
Forward-looking statements speak only as of the date of this press release. Except in the normal course of our public disclosure obligations, we expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any statement is based.
Investor Relations:
Strawberry Fields REIT, Inc.
IR@sfreit.com
+1 (773) 747-4100 x422
SOURCE: Strawberry Fields REIT LLC
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