Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”)
announced today the closing of its previously announced rights
offering (the “Rights Offering”) which expired at 5:00 p.m.,
Eastern time, on February 5, 2021.
At the closing of the rights offering, the Trust
sold and issued an aggregate of 1,383,394 shares of the Trust’s
common shares (“Common Shares”) at the subscription price of
$26.50, pursuant to the exercise of rights issued to the Trust’s
shareholders of record on December 28, 2020. The Company raised
aggregate gross proceeds of $36,659,941 from the Rights Offering.
After giving effect to the Rights Offering, the Trust has 3,299,533
shares of common stock issued and outstanding.
The rights offering was made pursuant to the
Trust’s Registration Statement on Form S-11 (File No. 333-251276)
(the “Registration Statement”) that was previously filed with the
Securities and Exchange Commission (the “SEC”) and became effective
on December 29, 2020. The Rights Offering was made only by means of
the prospectus supplement (the “prospectus supplement”) and the
accompanying prospectus, which was filed with the SEC and can be
accessed through the SEC’s website at www.sec.gov.
David Lesser, Power REIT’s Chairman and CEO
stated “We are pleased with the outcome of our Rights Offering. The
process demonstrated strong shareholder interest and participation
in what we structured as an investor-friendly form of capital raise
that was handled in a very cost-effective manner. The majority of
investors who participated sought shares in the Over-Subscription
Privilege and were granted all requested shares. The capital
generated from the Rights Offering provides Power REIT with the
immediate ability to continue its growth strategy through accretive
acquisitions. The Rights Offering demonstrates our focus on
shareholder value while creatively sourcing capital to execute on
our extensive acquisition pipeline which we believe can create
long-term sustainable cash flow.”
Pursuant to the terms of the Rights Offering,
Power REIT has directed its Transfer Agent, Broadridge Corporate
Issuer Solutions, Inc., to issue the Common Shares in book entry
form. Shareholders who properly exercised their Rights will receive
an email from Power REIT explaining how to transfer the shares to a
brokerage account.
As previously announced in July, 2019, Power
REIT pivoted its focus for new investments to Controlled
Environment Agriculture (“CEA”) which Power REIT believes is a
sustainable business approach for the cultivation of certain crops.
Power REIT’s current portfolio consists of approximately 50 acres
encompassing approximately 300,000 square feet of greenhouse
cultivation and processing space. To date, all of Power REIT’s CEA
related investments have tenants who are cultivating cannabis in
regulated markets pursuant to state licenses.
Power REIT recently announced two acquisitions
totaling approximately $4.5 million that will use a portion of the
proceeds from the Rights offering leaving approximately $32.2
million available for additional investment.
Mr. Lesser continued, “Power REIT’s capital
commitment to its existing CEA portfolio is approximately $32
million, with an average equity yield of approximately 19%. Based
on our in-place portfolio including the two recently announced
acquisitions that required approximately $4.5 million of proceeds
from the Rights Offering (generated by the sale of approximately
101,000 shares), Power REIT would have an annualized run rate of
Core FFO per common share of approximately $2.64. Including the
near term dilutive impact of the increase in share count from the
Rights Offering and the timing of deploying approximately $32.2
million of its remaining proceeds, the annualized run rate of Core
FFO per common share is projected to be approximately $1.67.
Assuming we deploy those remaining proceeds at an average
unleveraged yield of 16%, our pro-forma annualized run rate of Core
FFO per share would be approximately $3.15, net of adding
approximately $250,000 (annualized) of run-rate additional G&A
expense as we look to expand the depth of our team to support
continuing our dramatic growth.”
UPDATED INVESTOR
PRESENTATION
Power REIT has posted an updated investor
presentation which is available using the following link:
https://www.pwreit.com/investors
STATEMENT ON SUSTAINABILITY
Power REIT owns real estate related to
infrastructure assets including properties for Controlled
Environment Agriculture (CEA Facilities), Renewable Energy and
Transportation. CEA Facilities, such as greenhouses, provide an
environmentally friendly solution and consume approximately 70%
less energy than indoor growing operations which do not benefit
from “free” sunlight. CEA facilities use 90% less water than field
grown plants and operate without the use of pesticides and avoid
agricultural runoff of fertilizers. Power REIT’s facilities
cultivate medical Cannabis, which may be prescribed to help manage
a myriad of medical symptoms, including seizures and spasms,
multiple sclerosis, post-traumatic stress disorder, migraines,
arthritis, Parkinson’s disease, and Alzheimer’s. Renewable Energy
assets are comprised of land and infrastructure associated with
utility scale solar farms. These projects produce power without the
use of fossil fuels thereby lowering carbon emissions. The solar
farms produce approximately 50,000,000 kWh of electricity annually
which is enough to power approximately 4,600 home on a carbon free
basis. Transportation assets are comprised of land associated with
a railroad, an environmentally friendly mode of bulk
transportation.
ABOUT POWER REIT
Power REIT is a specialized real estate
investment trust (REIT) that owns sustainable real estate related
to infrastructure assets including properties for Controlled
Environment Agriculture, Renewable Energy and Transportation. Power
REIT is actively seeking to expand its real estate portfolio
related to Controlled Environment Agriculture for the cultivation
of food and cannabis. Power REIT is focuses on the “Triple Bottom
Line” with a commitment to Profit, Planet and People… Additional
information about Power REIT can be found on its website:
www.pwreit.com
CAUTIONARY STATEMENT ABOUT
FORWARD-LOOKING STATEMENTS
This document includes forward-looking
statements within the meaning of the U.S. securities laws.
Forward-looking statements are those that predict or describe
future events or trends and that do not relate solely to historical
matters. You can generally identify forward-looking statements as
statements containing the words “believe,” “expect,” “will,”
“anticipate,” “intend,” “estimate,” “project,” “plan,” “assume”,
“seek” or other similar expressions, or negatives of those
expressions, although not all forward-looking statements contain
these identifying words. All statements contained in this document
regarding our future strategy, future operations, future prospects,
the future of our industries and results that might be obtained by
pursuing management’s current or future plans and objectives are
forward-looking statements. You should not place undue reliance on
any forward-looking statements because the matters they describe
are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond our control. Over
time, our actual results, performance, financial condition or
achievements may differ from the anticipated results, performance,
financial condition or achievements that are expressed or implied
by our forward-looking statements, and such differences may be
significant and materially adverse to our security holders.
Important factors that could cause actual results to differ
materially from current expectations include, among others, our
ability to continue our growth strategy through accretive
acquisitions, our ability to position the Trust for future
profitability, our ability to maintain compliance with the
NYSE-AMEX listing requirements, and the other factors discussed in
the Trust’s Annual Report on Form 10-K for the year ended December
31, 2019 and its subsequent filings with the SEC, including
subsequent periodic reports on Forms 10-Q and 8-K. The information
in this release is provided only as of the date of this release,
and we undertake no obligation to update any forward-looking
statements contained in this release on account of new information,
future events, or otherwise, except as required by law.
CONACT:
David H. Lesser, Chairman &
CEO |
Mary Jensen, Investor
Relations |
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dlesser@pwreit.com |
mary@irrealized.com |
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212-750-0371 |
310-526-1707 |
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301 Winding RoadOld Bethpage, NY
11804 |
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www.pwreit.com |
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