Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) has announced an adjustment to the conversion price of its 7.00% Subordinated Convertible Notes due 2031. The adjustment follows the redemptions of Series D Preferred Stock on Monday, which settled at a conversion price significantly below the previous level.
Previously, the conversion price for the notes was approximately $14.29 per share of Wheeler's common stock, equating to roughly 1.75 shares for every $25.00 of the principal amount. However, due to the redemptions, the lowest conversion price for the Series D Preferred Stock was approximately $7.33 per share.
Consequently, the conversion price for the notes has been adjusted to about $4.03 per share, or approximately 6.20 shares per $25.00 of principal, representing a 45% discount to the aforementioned $7.33.
On Monday, Wheeler processed 20 redemption requests from holders of its Series D Preferred Stock, totaling 124,043 shares, at a redemption price of approximately $38.85 per share. This included accrued but unpaid dividends up to and including the redemption date. The company settled the aggregate redemption price by issuing 657,671 shares of common stock.
To date, Wheeler has processed 202 redemption requests, redeeming 1,072,674 shares of Series D Preferred Stock. This has been settled through the issuance of approximately 1.2 million shares of common stock, adjusted for the company’s reverse stock splits earlier in the year.
As of today, Wheeler has 1,224,485 shares of common stock and 2,562,873 shares of Series D Preferred Stock outstanding. Looking ahead, the deadline for the next round of Series D Preferred Stock redemptions is set for August 25, with the subsequent Holder Redemption Date scheduled for September 5.
This information is based on a press release statement.
In other recent news, Wheeler Real Estate Investment Trust, Inc. has announced significant financial developments. The company's S-11 registration statement has been approved by the Securities and Exchange Commission, paving the way for the issuance of up to 20,704,217 shares of common stock. This stock will be used for the redemption and conversion of its Series D Cumulative Convertible Preferred Stock.
The company also reported no redemptions for its Series D Preferred Stock for July, following the processing of 182 redemption requests which resulted in the redemption of 948,631 shares. In exchange, Wheeler REIT issued approximately 560,000 shares of common stock, settling an aggregate redemption price of about $35.9 million.
Wheeler REIT has also adjusted its reverse stock split strategy, moving from a one-for-six to a one-for-five reverse stock split. This change, along with a reduction in the par value of common stock from $0.05 to $0.01 per share, was reflected in amendments to the company's charter. However, this may lead to non-compliance with Nasdaq’s Publicly Held Shares Rule due to a reduced number of publicly held shares.
These are among the recent developments from Wheeler Real Estate Investment Trust, Inc. based on its latest SEC filings.
InvestingPro Insights
As Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) navigates through its financial restructuring, investors are keeping a close eye on its stock performance and financial health. Recent data from InvestingPro shows a market capitalization of just $1.8 million, underscoring the company's diminished size in the marketplace. Additionally, the stock has experienced significant volatility, with a one-week price total return showing a decline of 40.75% and a staggering one-year price total return of -99.56%, reflecting the challenges the company has faced.
InvestingPro Tips suggest that Wheeler's stock is currently in oversold territory, which could be of interest to contrarian investors looking for potential rebound opportunities. However, it's important to note that the stock has fared poorly over various time frames, including the last month, six months, and even the last decade. This persistent downward trend signals caution for investors considering entry points. For those seeking a more in-depth analysis, there are additional InvestingPro Tips available that could shed further light on Wheeler's investment prospects.
Despite the bleak performance in share price, one positive aspect is that Wheeler's liquid assets exceed its short-term obligations, providing some financial flexibility in the near term. Nevertheless, the company has not been profitable over the last twelve months, which is a critical factor for investors to consider. For a comprehensive view of Wheeler's financial metrics and additional tips, investors can refer to the detailed analysis available on InvestingPro.
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