MacKenzie Realty Capital (NASDAQ: MKZR) Commences $20 Million At-the-Market Offering Program

On January 15, 2025, MacKenzie Realty Capital, Inc. initiated an at-the-market offering program to potentially sell up to $20,000,000 of its common stock. This move was formalized through an Equity Distribution Agreement with Maxim Group LLC as the designated agent.

As per the terms outlined in the Distribution Agreement, MacKenzie Realty Capital can offer common shares with a maximum aggregate value of $20,000,000 periodically through the Agent, acting as the sales intermediary. Sales of these shares will occur through negotiated transactions or via transactions considered as an “at-the-market offering” per Rule 415(a)(4) under the Securities Act of 1933. The Agent stands to receive compensation equal to 3.0% of the gross proceeds from the sale of the common shares.

The company has committed to certain representations, warranties, and covenants concerning the common shares in the Distribution Agreement and has also agreed to provide indemnification to the Agent against specific liabilities, including those under the Securities Act.

The common shares to be sold under this program will be offered and sold in line with the shelf registration statement on Form S-3 previously filed by MacKenzie Realty Capital with the Securities and Exchange Commission. This offering is set to terminate upon the earlier occurrence of specific conditions, including the sale of all common shares subject to the Distribution Agreement, termination of the Agreement by either party with a 15-day written notice, or after 12 months from the Agreement’s date.

It is important to note that this Current Report on Form 8-K does not act as an offer to sell or a solicitation of an offer to buy common shares, nor should any sales occur in jurisdictions where such actions would be deemed illegal without proper registration or qualification.

For further details regarding the terms of the Distribution Agreement and the transactions anticipated as a result, interested parties are advised to refer to the full text of the Agreement, available as Exhibit 1.1 in the report.

Accompanying the report are opinions from legal firms Venable LLP and Husch Blackwell LLP concerning the legality of shares that may be offered as part of the program and certain federal tax matters, respectively.

This move by MacKenzie Realty Capital marks a strategic financial endeavor aimed at potentially raising capital by leveraging the market conditions to sell common shares in a prudent and controlled manner.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MacKenzie Realty Capital’s 8K filing here.

About MacKenzie Realty Capital

MacKenzie Realty Capital Inc is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc is based in ORINDA, Calif.