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SCOTTSDALE, Ariz. - CaliberCos Inc. (NASDAQ:CWD), a diversified real estate investor and asset manager, has priced its underwritten public offering at approximately $900,000. The offering includes 2.4 million units at $0.375 each, with each unit comprising one share of Class A common stock and a right to acquire one-fifth of a share of Class A common stock. The pricing comes as the company’s stock has experienced significant pressure, with InvestingPro data showing a 35% decline year-to-date and trading near its 52-week low of $0.37.
The company has stated its intention to allocate the net proceeds from the offering towards the repayment of debt and for general corporate purposes, including working capital. This capital raise comes at a crucial time, as InvestingPro analysis indicates the company is quickly burning through cash, with negative free cash flow of $3.18 million in the last twelve months. Caliber is the sole seller of the securities in this transaction, which is anticipated to conclude by April 21, 2025, pending customary closing conditions.
Craft Capital Management, LLC is serving as the exclusive book-runner and underwriter for the offering. The securities are being offered pursuant to an effective Registration Statement on Form S-3 filed with the SEC. A preliminary prospectus supplement and accompanying prospectus have been filed, and a final version of these documents will be filed with the SEC. Interested parties can access these documents on the SEC’s website.
Caliber boasts a 16-year history in the real estate sector, with over $2.9 billion in managed assets. While the company specializes in hospitality, multi-family residential, and multi-tenant industrial properties, focusing on investment opportunities often overlooked by global real estate institutions, recent financial metrics from InvestingPro show challenges, including a weak gross profit margin of 1.52% and an overall weak financial health score. However, analysts remain optimistic, projecting profitability for the current year despite recent headwinds.
The press release from Caliber includes forward-looking statements, which involve risks and uncertainties. The company cautions that these statements are not guarantees of future performance and that actual results may differ materially from those projected.
This news is based on a press release statement from CaliberCos Inc. and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, CaliberCos Inc. has reported its financial outcomes for the fourth quarter and full year of 2024. While specific figures were not disclosed in the initial announcement, the company has provided an earnings supplement attached to its SEC filing for detailed insights. Additionally, CaliberCos Inc. has updated its offering circular with the SEC to include new CUSIP information for its Series AA Cumulative Redeemable Preferred Stock, marking a strategic effort to enhance its capital structure. In a related development, the company has secured a $25 million equity line and issued a $1.67 million promissory note through agreements with Mast Hill Fund, L.P., aimed at bolstering its financial position.
CaliberCos Inc. has also announced the establishment of a new series of preferred stock, the Series AA Cumulative Redeemable Preferred Stock, featuring an annual dividend rate of 9.5%. This new stock series ranks senior to the company’s common stock and includes provisions for redemption and specific conditions under which the company may repurchase shares. These developments reflect CaliberCos Inc.’s ongoing strategic financial planning and efforts to expand its real estate and construction operations.
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