Creative Media issues shares for preferred stock redemptions

Creative Media & Community Trust Corporation (NASDAQ:CMCT), a real estate investment trust, has disclosed the unregistered issuance of common stock as part of its preferred stock redemption program. From November 1, 2024, through December 6, 2024, the company has issued a total of 8,228,538 shares of Common Stock in exchange for the redemption of 105,652 shares of Series A Preferred Stock. Additionally, 7,164,633 shares of Common Stock were issued for the redemption of 89,332 shares of Series A1 Preferred Stock.

The redemptions were carried out at the request of the holders of Series A and Series A1 Preferred Stock, and the value was determined based on the volume-weighted average price (VWAP) of the Common Stock over the 20 trading days preceding each redemption date.

This process allows preferred shareholders to convert their holdings into common shares instead of receiving cash payments. The company maintains a strong liquidity position with a current ratio of 2.85, indicating its ability to meet short-term obligations.

Creative Media & Community Trust Corp, headquartered in Dallas, Texas, and incorporated in Maryland, plans to continue fulfilling redemption requests with common stock issuances through the end of 2024. The company's common stock is listed on both the Nasdaq Global Market and the Tel Aviv Stock Exchange.

This strategic move by the company is part of its ongoing capital management practices. The issuance of common shares for preferred stock redemptions can provide liquidity to preferred shareholders while potentially conserving the company's cash resources.

The information outlined in this article is based on the latest 8-K filing with the Securities and Exchange Commission by Creative Media & Community Trust Corporation.

In other recent news, Creative Media & Community Trust Corp has made significant strides in its financial and operational developments. The company has agreed to extend a significant lease with its largest tenant through February 2027, a development that could have a substantial impact on its revenue stream. The real estate investment trust has also adjusted its 2022 credit agreement, reducing total commitments from $206.23 million to $169.26 million after a default event was waived by lenders.

Furthermore, Creative Media has announced the redemption of its preferred stock, which will result in the issuance of common stock. The exact number of common stock shares to be issued will be based on the volume-weighted average price of the common stock over the 20 trading days preceding the redemption date.

On the financial front, Creative Media reported a notable increase in net operating income across all operating segments to $16.2 million, a $4.2 million rise from the previous year. The company is also making progress on its development projects, with two multifamily projects and a hotel renovation underway. These are the recent developments for Creative Media & Community Trust Corporation.

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