Why The American Strategic Investment Stock Fell 1.29% (NYC)

By Amit Chowdhry ● Jan 25, 2023
  • The stock price of American Strategic Investment (NYC) fell by 1.29% in the most recent trading session. This is why.

The stock price of American Strategic Investment (NYC) fell by 1.29% in the most recent trading session. This is why.

Why: American Strategic Investment announced today that it commenced an offering of shares of its Class A common stock through a rights offering,

The company distributed to all holders of record of its Common Stock, as of 5:00 p.m., Eastern Time, on January 12, 2023, for each share of the Common Stock held as of the Record Date, one non-transferable subscription right to purchase 0.20130805 of a share of Common Stock, at a subscription price of $12.95 per whole share, on such terms and subject to such conditions as may be required to comply with any applicable New York Stock Exchange (NYSE) rules and regulations.

The company will not issue fractional shares of Common Stock. Any fractional shares of the Common Stock that would remain after the exercise of the subscription rights will be rounded down to the nearest whole share, and any excess payments in respect thereof will be returned.

The holders of at least 5 shares of Common Stock as of the Record Date will have the opportunity to participate in the Rights Offering and subscribe for newly issued shares of Common Stock in proportion to their respective ownership amount as of the Record Date. And to the extent that not all holders fully exercise their rights, those holders that do fully exercise will also have the option to purchase additional shares through an oversubscription option. The availability of the over-subscription option is subject to certain terms and restrictions set forth in the prospectus supplement.

Proceeds: The company plans to use the net proceeds from the Rights Offering for general corporate purposes, which may include purchases of additional properties and businesses or other assets including those that generate non-REIT qualifying income, consistent with its business plan.