Third Party Tender offer – Phillips Edison & Company
Are you concerned about your investment in Phillips Edison & Company (formerly known as Phillips Edison Grocery Center REIT)? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Phillips Edison & Company, Inc., an internally-managed REIT, is “one of the nation’s largest owners and operators of grocery-anchored shopping centers,” according to its website. As we told you in July, the REIT recently entered into a merger agreement with another REIT, Phillips Edison Grocery Center REIT II, Inc.
According to a new report, MacKenzie Realty Capital, Inc. is offering to purchase shares of Phillips Edison for $7.25 per share between now and October 26, 2018.
According to the offer letter, the Phillips Edison estimates that its shares are worth $11.05 per Share. Unfortunately for investors, “the proposed merger is subject to various conditions and it does not provide liquidity to investors. The proposed merger will require, among other things, a majority shareholder vote from both companies which is scheduled November 14, 2018.”
Further, the REIT’s Share Repurchase Program is oversubscribed and will be temporarily suspended. According to filings with the SEC, repurchase requests surpassed the fund limits under the SRP, and that it had “13.4 million shares of unfulfilled repurchase requests.”
This could be a problem for investors, if they need to sell their shares.
Lack of Liquidity – Risk of Non-Traded REITs
Investors looking to sell alternative investments, like Phillips Edison & Company, often have difficulty finding a buyer, and can suffer significant losses on the sale.
Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended Phillips Edison & Company and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.
The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve disputes with their brokerage firm. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
For a free, no obligation consultation with a securities attorney, please contact the offices of The White Law Group at 1-888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
Visit the firm’s homepage to learn more about the firm’s representation of investors.