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MacKenzie Realty Capital Announces Pricing of $4.8 Million Registered Direct Offering and Concurrent Private Placement
ORINDA, Calif., Feb. 28, 2025 (GLOBE NEWSWIRE) -- MacKenzie Realty Capital, Inc. (Nasdaq: MKZR) (“MacKenzie” or the “Company”), a West Coast-focused REIT that
About this update from Mackenzie Realty Capital, Inc.
[{"type":"text","content":"ORINDA, Calif., Feb. 28, 2025 (GLOBE NEWSWIRE) -- MacKenzie Realty Capital, Inc. (Nasdaq: MKZR) (“MacKenzie” or the “Company”), a West Coast-focused REIT that invests in commercial and residential assets, as well as illiquid real estate securities, today announced that it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale of 2,826,299 shares of common stock (or pre-funded warrants in lieu thereof) in a registered direct offering. In a concurrent private placement, the Company also agreed to issue unregistered Series A common warrants to purchase up to an aggregate of 1,413,149 shares of common Stock, and unregistered Series B common warrants to purchase up to an aggregate of 2,826,299 shares of common Stock. The combined effective offering price for each share of common stock (or pre-funded warrant in lieu thereof) and accompanying warrants is $1.71. The Series A common warrants and Series B common warrants will each have an exercise price of $1.71 per share, will each be exercisable 6 months from the date of issuance, and, in the case of Series A common warrants, will expire 18 months from the date of issuance, and in the case of Series B warrants, will expire five years from the date of issuance. The offering is expected to close on or about March 3, 2025, subject to satisfaction of customary closing conditions. Maxim Group LLC is acting as the sole placement agent for the offering. The gross proceeds to MacKenzie from this offering are expected to be approximately $4.8 million, before deducting placement agent fees and other offering expenses. MacKenzie intends to use the net proceeds of this offering for capital expenditures, including acquisitions of additional properties (although no potential acquisition targets have been currently identified), strategic principal payments on outstanding loans (although no specific loans or principal payments have yet been identified), payment of operating expenses, fees and other costs, funding for their preferred stock share repurchase program, other sales and marketing activities and working capital and general corporate purposes. The shares of common stock (or pre-funded warrants in lieu thereof) are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-283478), which was declared effective on Ja...