LA JOLLA, Calif., Oct. 1, 2013 /PRNewswire/ -- Reven Housing REIT,
Inc. ("Reven" or the "Company") (OTCQB: RVEN) today announced that
it has completed a private financing of $11.9 million on September
27, 2013.
The financing consisted of the Company's sale of common shares
to King APEX Group II, Ltd. and King APEX Group III, Ltd., which
funds are both managed by Allied Fortune (HK) Management Limited, a
Hong Kong based funds management
company in exchange for $11,000,000
of new capital. The Company also converted $902,176 of principal outstanding under
previously issued 10% Convertible Promissory Notes ("Bridge Notes")
at the offering price of $0.20 per
share. The financing proceeds will be used to pay off
approximately $152,176 of the
remaining outstanding principal of the Bridge Notes that did not
convert into shares of the Company's common shares and
approximately $88,821 in accrued
interest of the Bridge Notes. In addition, the financing
proceeds will be used to acquire real estate investments and for
future working capital needs. Additional details regarding
the financing can be found in the Form 8-K to be filed with the
U.S. Securities and Exchange Commission.
The cash portion of financing represents the initial closing of
the proposed sale of up to $25
million of common shares by the Company at $0.20 per share. The Company expects to
conduct additional closings for up to an additional $14,000,000 before the end of the calendar
year.
Chad M. Carpenter, Chairman and
CEO, explained, "This financing marks a major milestone in the
growth of our Company. The amount of new capital, coupled with the
conversion of 86% of the outstanding Bridge Notes, provides Reven
with a relatively debt free balance sheet going forward and over
$10,000,000 million in cash.
Our plan is to move quickly in acquiring additional real estate
investments."
Xiaofan Bai, Chairman & CEO
of Allied Fortune (HK) Management Limited, states, "We are very
excited about this new investment in Reven and intend to invest
more capital for future acquisitions and assist the Company with
its capital strategies."
This press release contains forward-looking statements that
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events and similar expressions.
Forward-looking statements may be identified by use of words such
as "may," "will," "should," "expects," "intends," "plans,"
"anticipates," "believes," "estimates," or "potential" or similar
words or phrases which are predictions of or indicate future events
or trends. Statements such as those concerning potential
acquisition activity, investment objectives, strategies,
opportunities, other plans and objectives for future operations or
economic performance are based on the Company's current
expectations, plans, estimates, assumptions and beliefs that
involve numerous risks and uncertainties. Any of these
statements could prove to be inaccurate and actual events or
investments and results of operations could differ materially from
those expressed or implied, including the ability of the Company to
consummate additional closings of the private placement. To
the extent that the Company's assumptions differ from actual
results, the Company's ability to meet such forward-looking
statements, including its ability to invest in a diversified
portfolio of quality real estate investments, may be significantly
and negatively impacted. You are cautioned not to place undue
reliance on any forward-looking statements and the Company
disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying
assumptions or factors, new information, future events or other
changes. Please refer to Company's Annual Report on Form 10-K
filed with the Securities and Exchange Commission on for the year
ended December 31, 2012 filed with
the SEC on March 29, 2013, and
subsequently filed SEC reports, for further information.
SOURCE Reven Housing REIT, Inc.