Brokered deal priced in November; company sells senior common stock
By Devika Patel
Knoxville, Tenn., Oct. 13 - Gladstone Commercial Corp. completed a tranche of a private placement of stock on Oct. 12, according to an 8-K filed Wednesday with the Securities and Exchange Commission. Halcyon Capital Markets, LLC is the agent for the deal, which priced on Nov. 19. The company raised $63,405 on July 8 and $100,000 on Aug. 10. It raised $415,000 on Sept. 29 and $107,342 in this tranche.
The company is selling up to 3,333,333 senior common shares at $15.00 apiece on a best efforts basis for a total of $50 million. The per-share price represents an 11.44% premium to the Nov. 18 closing share price of $13.46.
Gladstone sold 4,227 shares in the July 8 tranche and 6,666.67 shares in the Aug. 10 tranche. It sold 27,666.67 shares on Sept. 29 and 7,156.11 shares in the Oct. 12 tranche.
The senior common stock will pay dividends at a rate equal to $1.05 per share per annum, declared daily and paid at the rate of $0.0875 per share per month.
Proceeds will be used for investments, to repay debt, purchase preferred shares on the open market or for other general corporate purposes.
Gladstone Commercial is a real estate investment trust based in McLean, Va.
Issuer: | Gladstone Commercial Corp.
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Issue: | Senior common stock
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Amount: | $50 million
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Shares: | 3,333,333
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Price: | $15.00
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Warrants: | No
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Agent: | Halcyon Capital Markets, LLC
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Pricing date: | Nov. 19
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Settlement date: | July 8 (for $63,405), Aug. 10 (for $100,000), Sept. 29 (for $415,000), Oct. 12 (for $107,342)
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Stock symbol: | Nasdaq: GOOD
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Stock price: | $13.46 at close Nov. 18
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Market capitalization: | $158.08 million
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