Creative Media & Community Trust Corp (NASDAQ:CMCT) has reported unregistered sales of equity securities and amendments to its articles of incorporation, according to a recent SEC filing. The company has issued common stock in lieu of cash payments for redemptions of its preferred stock and has implemented a reverse stock split.
On January 8, 2025, Creative Media issued 20,368 shares of common stock for the redemption of 1,738 shares of Series A1 Preferred Stock. The following day, the company issued 83,952 shares of common stock for the redemption of 7,120 shares of Series A1 Preferred Stock. On the same day, 127,392 shares of common stock were issued for the redemption of 10,269 shares of Series A Preferred Stock.
On January 10, 2025, 770,035 shares of common stock were issued for the redemption of 65,285 shares of Series A1 Preferred Stock, and 485,326 shares for the redemption of 39,814 shares of Series A Preferred Stock. Redemptions were based on the volume-weighted average price (VWAP) of the common stock for the 20 trading days preceding each redemption date.
Additionally, the company has conducted a one-for-ten reverse stock split, effective as of 12:01 am Eastern Standard Time on January 6, 2025. This action has combined every ten shares of issued and outstanding common stock into one share. A subsequent amendment, effective as of 12:02 am Eastern Standard Time on the same day, reverted the par value of the issued and outstanding common stock to $0.001 per share.
Despite recent market challenges, InvestingPro data shows the company maintains a healthy current ratio of 2.85, indicating strong liquidity, and offers a significant dividend yield to shareholders. Discover 10+ additional exclusive insights and detailed financial analysis available on InvestingPro.
Creative Media plans to continue satisfying redemption requests for its Series A and Series A1 Preferred Stock with shares of common stock through the first quarter of 2025. The company, based in Dallas, Texas, operates under the real estate investment trusts (REITs) industry classification, with a Financial Health score of "FAIR" according to InvestingPro's comprehensive analysis framework. Access the full Pro Research Report, available for 1,400+ US stocks, for deeper insights into CMCT's financial position and growth prospects.
In other recent news, Creative Media & Community Trust Corporation has reported significant developments. The company has issued a total of 15,393,171 shares of Common Stock for the redemption of 194,984 shares of Series A Preferred Stock and 7,164,633 shares of Common Stock for the redemption of 89,332 shares of Series A1 Preferred Stock. This strategy allows the company to manage cash outflows while providing liquidity to preferred shareholders.
Creative Media has also extended a significant lease with its largest tenant through February 2027, a move that may impact its revenue stream. In addition, the company has made amendments to its 2022 credit agreement, reducing total commitments from $206.23 million to $169.26 million, following a default event waiver by lenders.
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 progressing on its development projects, with two multifamily projects and a hotel renovation underway.
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