DALLAS, TX – Creative Media & Community Trust Corporation (NASDAQ:CMCT), a real estate investment trust, has announced the redemption of its preferred stock, which will result in the issuance of common stock. The company provided notice on Thursday and Friday of last week that it would redeem approximately 2.2 million shares of Series A Preferred Stock and about 2.6 million shares of Series A1 Preferred Stock.
In lieu of cash, the redemption price will be paid in shares of Creative Media’s common stock. The number of common stock shares to be issued will be determined by the volume-weighted average price (VWAP) of the common stock over the 20 trading days preceding the redemption date, as stipulated by the company’s charter. Consequently, the exact number of common stock shares to be distributed is not yet ascertainable.
This transaction is exempt from registration under the Securities Act of 1933, as amended, per Section 3(a)(9) of the Act. The exemption allows for the exchange of securities without the typical registration process, provided certain conditions are met, including that the exchange is with existing security holders exclusively and no commission or other remuneration is paid for soliciting the exchange.
Creative Media, headquartered at 5956 Sherry Lane, Suite 700, Dallas, TX, is incorporated in Maryland and operates under the real estate investment trusts industry classification. The company, formerly known as CIM Commercial Trust Corp and PMC Commercial Trust /TX, has undergone name changes in the past, with the most recent change occurring in 2014.
In other recent news, Creative Media and Community Trust Corporation (CMCT) reported a rise in net operating income (NOI) across all real estate operating segments in the second quarter of 2024. Their NOI increased to $16.2 million, a $4.2 million rise from the previous year.
The company is actively developing strategies to boost its financials, including asset sales and debt reduction, despite facing high short-term interest rates and challenges in the office market.
CMCT is also progressing on two multifamily projects and a hotel renovation. The company’s multifamily segment NOI was driven by occupancy gains, and the lending segment saw a 42% increase due to lower interest expenses. However, the company reported negative FFO per diluted share but raised $8.3 million in net proceeds through preferred stock issuance.
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