Power REIT Announces Rights Offering to Existing Common Shareholders to Raise Capital for Acquisitions
December 18 2020 - 7:30AM
Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”)
today announced that it intends to conduct a rights offering (the
“Rights Offering”). Power REIT is conducting the Rights Offering to
offer existing holders of its Common Shares the ability to
participate in providing capital to the Power REIT on a
non-dilutive basis. The proceeds are intended to be used primarily
to finance acquisitions of real property assets, in particular real
estate within the Controlled Environment Agriculture (“CEA”)
sector, and to fund our subsidiaries. In addition, the proceeds may
be used to retire all or a portion of any debt, to redeem any
outstanding preferred stock, or for working capital purposes,
including the payment of distributions, interest and operating
expenses.
Power REIT has established December 28, 2020 at
5:00 PM Eastern Time as the record date (the “Record Date”) for the
Rights Offering.
Upon commencement of the planned Rights
Offering, the Trust will distribute non-transferable rights (the
“Rights”) to purchase additional shares of Power REIT’s common
stock to existing Power REIT common stockholders and holders of
outstanding Power REIT options. Additionally, holders of Rights may
subscribe for additional shares of our Common Shares through an
over-subscription privilege.
No rights will be distributed until the final
terms of the Rights Offering, including the subscription price and
the expiration date for the Rights, have been set forth in a final
prospectus supplement that will be filed with the SEC and
distributed to stockholders of the Trust’s Common Shares as of the
Record Date.
A Registration Statement relating to the Rights
offering has been filed with the Securities and Exchange Commission
but has not yet become effective. The Trust may not accept any
offers to purchase Power REIT Common Shares pursuant to the Rights
prior to the time the Registration Statement becomes effective.
This Press Release shall not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be
any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
ABOUT POWER REIT
Power REIT is a real estate investment trust
(REIT) that owns real estate related to infrastructure assets
including properties for Controlled Environment Agriculture,
Renewable Energy and Transportation. Power REIT is actively seeking
to expand its real estate portfolio related to Controlled
Environment Agriculture.
Additional information about Power REIT can be
found on its website: www.pwreit.com
CAUTIONARY STATEMENT ABOUT
FORWARD-LOOKING STATEMENTS
This release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. In some cases, forward-looking statements can
be identified by terminology such as "may," "should," "potential,"
"continue," "expects," "anticipates," "intends," "plans,"
"believes," "estimates," and similar expressions. These
forward-looking statements are based on management's expectations
and assumptions as of the date of this press release and are
subject to a number of risks and uncertainties, many of which are
difficult to predict that could cause actual results to differ
materially from current expectations and assumptions from those set
forth or implied by any forward-looking statements. Important
factors that could cause actual results to differ materially from
current expectations include, among others, the Company’s ability
to raise capital through the Rights Offering as planned, the
Company’s ability to position itself for future profitability, the
Company’s ability to maintain compliance with the NYSE-AMEX listing
requirements, and the other factors discussed in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2019 and
the Company’s subsequent filings with the SEC, including subsequent
periodic reports on Forms 10-Q and 8-K. The information in this
release is provided only as of the date of this release, and we
undertake no obligation to update any forward-looking statements
contained in this release on account of new information, future
events, or otherwise, except as required by law.
CONACT:
David H. Lesser, Chairman & CEO |
Mary Jensen, Investor Relations |
dlesser@pwreit.com |
mary@irrealized.com |
212-750-0371 |
310-526-1707 |
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301 Winding RoadOld Bethpage, NY
11804 |
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www.pwreit.com |
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