Presidio Property Trust (NASDAQ: SQFT) has closed a registered direct offering of 1 million of its Series A common shares, warrants to buy up to 1 million Predisio common shares, and pre-funded warrants to purchase 1 million shares of the company’s common stock.
President announces registered direct offering
The company sells each common share and accompanies ordinary stock warrants at an offering price of $5. At the same time, Presidio is offering each common share plus the accompanying pre-funded warrants at a combined selling price of $4.99. Notably, the Pre-Funder warrants will be exercisable immediately at a minimal price of $0.01, which could be exercised any moment until they are all exercised in full. On the other hand, the common stock warrants exercisable at $5.5 are exercisable immediately, and they have a term of five years from the day of issuance.
Presidio to generate $9.1 million in proceeds from offering
Presidio expects to realize net proceeds of around $9.1 million after subtracting agent placement fees and offering expenses. The net proceeds include around $4.6 million from common stock warrant and Pre-Funded Warrants issuance in the simultaneous private placement. In addition, the company will plan to use net proceeds from the offering for general corporate purposes and working capital that will include the acquisition of prospective properties.
The company is issuing the shares and warrant pursuant to a Shelf Registration Statement Form S-3 (No. 333-251779) that was previously filed with the US SEC. In addition, Presidio has filed a prospectus supplement with the SEC describing the proposed offering’s terms.
Presidio is a diversified REIT having holdings in Industrial, retail, office, and model home properties, triple leased to home developers. The company leases the model homes to home builders in Florida and Texas, and the industrial, retail, and office properties are in Colorado, North Dakota, and southern California. The geographical clustering of properties enables the company to reduce operating costs.
