NEW YORK, NY — Lument Finance Trust, Inc. (NYSE: LFT) (“LFT” or the “Company”) announced preliminary results of its transferable rights offering, which commenced on January 18, 2022 and expired on February 11, 2022 (the “Expiration Date”). Wells Fargo Securities, LLC and JMP Securities, A Citizens Company, acted as the dealer managers for the rights offering.
The rights offering entitled rights holders to subscribe for an aggregate of up to 37,421,825 shares of the Company’s common stock at a subscription price per share equal to 92.5% of the volume-weighted average sales prices of the Company’s common stock on the NYSE for the five consecutive trading days ending on, and including, the Expiration Date; provided the subscription price per share would be no less than $3.06, which equals 70% of the Company’s book value per share of common stock as of September 30, 2021. Accordingly, the final subscription price per share was $3.06.
Based on a preliminary tabulation by Broadridge Corporate Issuer Solutions, Inc., the Company’s subscription agent for the rights offering (the “Subscription Agent”), as of the Expiration Date, the Company received subscriptions for a total of 27,278,217 shares of common stock, including subscriptions for 27,012,867 shares of common stock accompanied by estimated payments and subscriptions for 265,350 shares of common stock by notice of guaranteed delivery. Gross proceeds from the rights offering are expected to total approximately $83.5 million. No assurance can be given that the Company will receive payments for the 265,350 shares of common stock subscribed for by notice of guaranteed delivery on or before 5:00 p.m., New York City time, on February 15, 2022. As a result, the total number of shares of common stock subscribed for and the gross proceeds from the rights offering could be less than 27,278,217 shares and less than $83.5 million, respectively. The exact number of shares of common stock subscribed for in the rights offering will be determined on or about February 16, 2022. The results discussed in this press release are preliminary and subject to change, including as a result of ownership limitations set forth in the Company’s charter.
Confirmations of shares purchased in the rights offering will be mailed to participating rights holders on or about February 25, 2022. The final subscription price per share is lower than the estimated subscription price of $3.58 per share. Accordingly, excess payments will be refunded by the Subscription Agent to participating rights holders as promptly as practicable in accordance with the procedures described in the prospectus supplements relating to the rights offering and the accompanying prospectus filed with the Securities and Exchange Commission on January 7, 2022 and February 2, 2022.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the shares referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
ABOUT LFT
LFT is a Maryland corporation focused on investing in, financing and managing a portfolio of commercial real estate debt investments. LFT primarily invests in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets. LFT is externally managed and advised by OREC Investment Management, LLC d/b/a Lument Investment Management, a Delaware limited liability company.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. Lument Finance Trust, Inc. undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
INVESTOR RELATIONS CONTACT:
Charles Duddy
Managing Director
(646) 248-0174 | charles.duddy@lument.com