MacKenzie Realty Capital Announces Registered Direct Offering
MacKenzie Realty Capital, Inc. (MacKenzie), a leading West Coast REIT, recently announced that it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale of 2,826,299 shares of common stock (or pre-funded warrants in lieu thereof) in a registered direct offering. The offering is expected to close on or about March 3, 2025, subject to customary closing conditions.
Details of the Offering
The offering is being made pursuant to a registration statement on Form S-3 (File No. 333-255131) that was declared effective by the Securities and Exchange Commission (SEC) on February 25, 2025. The net proceeds from the offering are estimated to be approximately $75.0 million, after deducting the underwriting discount and other offering expenses payable by MacKenzie.
Impact on MacKenzie
The proceeds from the offering will be used by MacKenzie for general corporate purposes, including the acquisition and development of commercial and residential assets, as well as the investment in illiquid real estate securities. This offering represents a significant capital raise for MacKenzie, which will enable the company to expand its footprint in the West Coast real estate market and strengthen its balance sheet.
Impact on Individual Investors
The offering may have a positive impact on individual investors who own MacKenzie stock. The proceeds from the offering can be used to fund new acquisitions and developments, which could lead to increased revenues and earnings for the company. Additionally, the offering may signal to the market that there is strong demand for MacKenzie’s stock, which could drive up the price.
Impact on the Real Estate Market
The offering is a positive sign for the real estate market, as it indicates that institutional investors continue to have confidence in the sector. MacKenzie’s ability to raise capital through a registered direct offering demonstrates the strength of the real estate market and the attractiveness of real estate investments to institutional investors.
Conclusion
MacKenzie Realty Capital’s announcement of a registered direct offering is a significant development for the company and the real estate market. The proceeds from the offering will enable MacKenzie to expand its operations and strengthen its balance sheet, while providing a positive signal to the market about the attractiveness of real estate investments. Individual investors may benefit from the offering through increased revenues and earnings for the company and potential price appreciation in MacKenzie stock.
- MacKenzie Realty Capital announces registered direct offering
- Company to sell 2,826,299 shares of common stock or pre-funded warrants in lieu thereof
- Net proceeds estimated at $75.0 million
- Proceeds to be used for general corporate purposes
- Positive impact on MacKenzie stock and real estate market
