October 30, 2018 Comments (0) Blog

AFIN – American Finance Trust – Tender Offer

AFIN

AFIN Urges Shareholders to reject new tender offer from Mackenzie Realty Capital

According to reports this week, the board of American Finance Trust Inc. (NASDAQ: AFIN), is urging company shareholders to reject a recent unsolicited tender offer from MacKenzie Realty Capital Inc. This is the second tender offer that MacKenzie has extended to purchase AFIN shares this year.

The White Law Group continues its investigation into potential securities fraud claims involving broker dealers who may have unsuitably recommended AFIN to investors.

AFIN, a former non-traded real estate investment trust sponsored by AR Global, has listed 75 percent of its Class A and former Class B-1 shares on NASDAQ, and the remaining Class B-2 shares are expected to list by January 2019. The company terminated its share repurchase program at the end of June prior to listing on NASDAQ.

The non-traded REIT has a portfolio reportedly consisting of 560 single-tenant net lease and multi-tenant retail and lifestyle center properties. The company raised more than $1.6 billion in investor equity between April and October 2013, according to reports.

MacKenzie’s Tender offer for AFIN shares

MacKenzie’s recent tender offer is for $15.00 per Class A share and $14.01 per Class B-1 share, and will purchase up to 400,000 shares of each class. The offer expires on November 16, 2018.

In July 2018, MacKenzie extended an offer to purchase up to 400,000 shares of each class; $15.00 per Class A share, $11.27 per Class B-1 share, and $10.00 per Class B-2 share. The original offering price was $25.00 per share.

AFIN stock closed at $13.55 on October 29, 2018.

Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with non-traded REITs before purchasing them.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses through FINRA Arbitration.

Free Consultation with a Securities Attorney

If you suffered losses investing in American Finance Trust, the securities attorneys at The White Law Group may be able to help you. To speak to a securities attorney about the potential to recover your investment losses, please call the offices of The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.