MacKenzie Realty Capital's $4.8 Million Offering Explained
MacKenzie Realty Capital Engages in a Major Fundraising Endeavor
MacKenzie Realty Capital, Inc. (NASDAQ: MKZR), an innovative Real Estate Investment Trust (REIT), has taken a significant step forward by announcing its recent securities purchase agreement with a prominent institutional investor. This agreement involves the purchase of 2,826,299 shares of common stock, which can also be substituted with pre-funded warrants. This strategic move is part of a registered direct offering aimed at raising essential funds for the company's future developments and growth.
Details of the Offering
Understanding the Financial Aspects
The registered direct offering includes an enticing combination of purchasing stock shares and warrants for an effective offering price of $1.71 each. Alongside this, MacKenzie Realty Capital is also set to unveil unregistered Series A and Series B common warrants. These will allow investors to purchase an additional 1,413,149 shares and 2,826,299 shares of common stock, respectively. Such opportunities present beneficial buy-in options for those wishing to tap into the company's evolving profitability.
Expected Use of Proceeds
Gone are the days of uncertainty about how capital will be efficiently utilized. MacKenzie has a solid plan in place. The expected gross proceeds of approximately $4.8 million will be strategically channeled towards various capital expenditures. This includes acquiring more properties, paying down debt through strategic principal payments, and funding operational expenses among others. This calculated approach demonstrates MacKenzie’s commitment to enhancing its asset portfolio while ensuring ongoing operational efficiency.
The Role of Maxim Group LLC
To facilitate this significant offering, the company has engaged Maxim Group LLC as its sole placement agent. This partnership underscores MacKenzie’s strategy of employing seasoned professionals to guide their financial endeavors and successfully connect with potential investors.
Warrants and Their Relevance
A Look Into the Warrants Issuance
The offering will also see the issuance of warrants that each bear an exercise price of $1.71 per share. Importantly, both Series A and Series B common warrants will have different expiration timelines, signaling MacKenzie’s flexible approach to financial instruments. The Series A common warrants will become exercisable six months post-issuance and will carry an 18-month expiry, whereas the Series B warrants will offer more extended access with a five-year timeframe.
Future Prospects for Investors
The opportunity at hand serves to showcase the company's growth potential, positioning itself favorably in the competitive market of real estate investments. With well-defined plans for asset expansion and operational sustainability, existing and prospective investors can look forward to potentially rewarding outcomes.
About MacKenzie Realty Capital
Founded in 2013, MacKenzie Realty Capital aims to invest primarily in real estate properties, emphasizing multifamily units and boutique class A office spaces. The company is committed to maintaining a balanced portfolio, thereby ensuring it meets both investor interests and market demands. Notably, MacKenzie has consistently rewarded its stakeholders through regular dividend payments since inception, highlighting its financial reliability.
To explore further, interested individuals can connect with MacKenzie’s dedicated team at (800) 854-8357. The company encourages potential investors to browse its informative website for more details.
Frequently Asked Questions
What is the significance of the recent $4.8 million offering?
The offering is crucial for funding future property acquisitions and ensuring operational progress, contributing to the overall growth of MacKenzie Realty Capital.
Who is acting as the placement agent for this offering?
Maxim Group LLC has been appointed as the sole placement agent, lending their expertise to facilitate the fundraising process.
What types of warrants are being issued?
The offering includes both Series A and Series B common warrants, allowing investors various options for share purchase over differing timelines.
How does MacKenzie Realty Capital intend to use the proceeds?
The proceeds will fund acquisitions, debt reductions, operational expenses, and other corporate activities to enhance the company’s portfolio.
When is the offering expected to close?
The closing of the offering is anticipated to occur shortly, contingent upon meeting customary closing conditions, likely around early March 2025.
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