Would you listen if a company selling its stock asked you to reject a buyer’s offer?
That’s the conundrum facing stockholders of American Finance Trust, Inc. (NASDAQ: AFIN.) This REIT was formerly not traded, and sponsored by AR Global. The company has 75% of its Class A and former Class B-1 shares, 400,000, on the NASDAQ. The remaining Class B-2 shares are expected to be listed in January 2019.
McKenzie Realty Capital Inc. made, for the second time, an unsolicited tender offer to purchase up to 400,000 shares of each class of the company’s common stock. AFIN’s board is urging stockholders to reject McKenzie’s offer. However, both sides offer reasons for their recommendation.
The AFIN shares originally sold for $25.00 each. In July of this year, MacKenzie offered $15.00 per Class A share, $11.27 per Class B-1 share, and $10.00 per Class B-2 share. AFIN believes that McKenzie is interested in buying shares because they will later be worth more than the current purchase price. This is McKenzie’s second unsolicited tender offer. However, investors in need of capital are already suffering a large loss.
As a non-traded entity, AFIN raised $1.6 billion in investor equity from April through October 2013. Their multi-billion dollar portfolio includes 560 single-tenant net lease and multi-tenant retail and lifestyle center properties.
Are You An AFIN Investor?
If you’ve invested in AFIN, or other non-traded, illiquid REITS and have questions about your account, contact us for a free consultation.
Silver Law Group represents investors in securities and investment fraud cases. We are currently pursuing claims against multiple broker-dealers for the sale of AFIN. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. Most cases handled on a contingent fee basis. This means that you won’t pay legal fees unless we are successful. Call us toll free at 800-975-4345, or use our online contact form to get in touch.