Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR), a Maryland-based real estate investment trust, announced today that its registration statement on Form S-11, filed on July 1, 2024, has been declared effective by the Securities and Exchange Commission (SEC). The company's filing includes a final prospectus related to the future issuance of up to 20,704,217 shares of common stock, which will be used for the redemption and conversion of its Series D Cumulative Convertible Preferred Stock.
The issuance of common stock is scheduled to commence on August 5, 2024, to settle monthly redemptions of the Series D Preferred Stock, starting with redemption requests submitted by July 25, 2024. This announcement follows the company’s recent updates to its Frequently Asked Questions (FAQs) regarding the redemption process, which further clarify how holders of unregistered shares of common stock issued in previous redemptions can remove restrictions on their shares if they meet the conditions of Rule 144 under the Securities Act of 1933.
The updated FAQs and additional details about the redemption process are available on Wheeler REIT's investor relations website. It is important to note that the information provided on the company’s website is not incorporated by reference into this report and should not be considered as part of this financial disclosure.
The company's forward-looking statements included in the report are subject to various risks and uncertainties, which could cause actual results to differ materially from those projected. Wheeler REIT disclaims any obligation to update or revise any forward-looking statements, except as required by law.
This news is based on a press release statement and provides investors with the latest information on Wheeler REIT's financial activities as they relate to the SEC filing and the company's stock offerings.
In other recent news, Wheeler Real Estate Investment Trust, Inc. reported no Series D redemptions for July 2024, a development following the processing of 182 redemption requests to date, which resulted in the redemption of 948,631 shares of Series D Preferred Stock. In exchange, Wheeler REIT issued approximately 560,000 shares of its common stock, with a par value of $0.01 per share, settling an aggregate redemption price of about $35.9 million. The company's recent one-for-24 and one-for-five reverse stock splits have adjusted these figures.
Wheeler REIT also announced changes to its reverse stock split strategy, shifting from a one-for-six to a one-for-five reverse stock split. The modification will not change the number of authorized shares or the company's ticker symbol, but it may lead to non-compliance with Nasdaq’s Publicly Held Shares Rule due to a reduced number of publicly held shares.
Lastly, the firm has submitted the necessary amendments to its charter, including the stock split and a reduction in the par value of common stock from $0.05 to $0.01 per share. These are the recent developments from Wheeler Real Estate Investment Trust, Inc. based on its latest SEC filings.
InvestingPro Insights
As Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) prepares for the issuance of common stock related to its Series D Preferred Stock redemption, investors may be evaluating the company's current market standing and future prospects. According to recent InvestingPro data, WHLR has a market capitalization of $9.08 million and has experienced a significant revenue growth of 17.09% over the last twelve months as of Q1 2024. Despite this, the company has not been profitable over the same period, with a reported basic and diluted EPS (Continuing Operations) of -$189.76.
InvestingPro Tips highlight that WHLR's stock price is known for its high volatility, which is reflected in its price movements. In the short term, the stock has seen a strong return over the last month with an 86.58% price total return, yet it has fallen significantly over the last year, with a -97.84% price total return. This volatility should be considered by investors looking at the long-term performance of their investments. Additionally, while the stock does not pay a dividend, it is worth noting that WHLR's liquid assets exceed its short-term obligations, which could be a sign of financial stability.
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