Wheeler REIT launches offering of cumulative preferred stock units

Maxim Group, Newbridge Securities are joint bookrunners

By Jennifer Chiou and Stephanie N. Rotondo

New York, Sept. 9 – Wheeler Real Estate Investment Trust Inc. filed a prospectus for an offering of 120,000 preferred stock units in an S-11/A with the Securities and Exchange Commission.

Plans for $17.25 million of the units were announced in March.

As reported, there is an 18,000 unit over-allotment option.

Each unit consists of five series B preferred shares and six five-year warrants to purchase common stock at an exercise price of $5.50 per share. The common-share warrants expire on April 29, 2019.

Maxim Group LLC and Newbridge Securities Corp. are the joint bookrunners with National Securities Corp. and MLV & Co. as lead managers.

Dividends on the preferreds will be cumulative and payable monthly. Holders will also have an option to convert the preferreds into common stock.

There is also a mandatory conversion feature.

The company intends to invest proceeds from the sale in connection with its acquisition of Contemplated Properties, for future acquisitions and for general working capital purposes.

Wheeler’s common stock is listed on the Nasdaq Global Select Market under “WHLR” and last closed at $4.99 per share on Sept. 8. The company lists the preferreds on the Nasdaq under “WHLRP” and the warrants under “WHLRW.” The last reported price of the series B preferreds was $25.39 per share, and the warrants were last sold at $0.46 on Sept. 8.

Wheeler is based in Virginia Beach.

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