ST. JAMES, N.Y. - Gyrodyne, LLC (NASDAQ: GYRO), a real estate owner and manager, has initiated a rights offering to raise up to $5 million, the company announced today. This move follows the effective registration of the offering with the Securities and Exchange Commission (SEC) on February 2, 2024.
In this rights offering, Gyrodyne will grant existing shareholders, as recorded on January 29, 2024, the non-transferable right to buy additional common stock. Shareholders are entitled to one right for every five shares they own, with each full right allowing the purchase of two shares at $8.00 each. Should any shares remain unsubscribed, shareholders who have fully exercised their basic rights can apply for additional shares under an oversubscription privilege, subject to certain conditions and availability.
The company aims to use the net proceeds for various purposes, including advancing entitlements for their Flowerfield and Cortlandt Manor properties, covering litigation fees, and other corporate needs. The subscription period is open until 5:00 p.m. New York City time on March 7, 2024, with a potential extension up to April 6, 2024.
Gyrodyne's portfolio includes a mix of office, industrial, and service properties in the New York metropolitan area. The company is currently seeking to enhance the value of two significant properties, a 63-acre site in Long Island and a medical office park in Cortlandt Manor.
The information in this article is based on a press release.
InvestingPro Insights
As Gyrodyne, LLC (NASDAQ: GYRO) embarks on its rights offering to strengthen its financial position and advance key property developments, recent data from InvestingPro provides a snapshot of the company's market performance. Gyrodyne's market capitalization stands at $13.76 million, with a previous closing price of $9.12, which is 69.01% of its 52-week high. This valuation comes at a time when the company's stock price has experienced significant volatility. Over the last week, the stock has seen a price total return of -7.51%, extending to a -12.6% year-to-date return. These figures highlight the challenges Gyrodyne faces in the market.
InvestingPro Tips for Gyrodyne suggest caution for potential investors. The company has been grappling with weak gross profit margins, and its valuation implies a poor free cash flow yield. Additionally, Gyrodyne does not offer dividends, which may be a deterrent for income-focused investors. These factors are crucial for shareholders to consider, especially in light of the current rights offering.
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