Procaccianti Hotel REIT Securities Investigation
Procaccianti Hotel REIT – Suspends SRP due to Coronavirus (COVID-19) Pandemic
Have you suffered losses investing in Procaccianti Hotel REIT? If so, the securities attorneys at The White Law group may be able to help you to recover your losses through FINRA Arbitration.
Procaccianti Hotel REIT Inc., a publicly registered non-traded REIT, has reportedly suspended its share repurchase program (SRP), due to the negative impact of the COVID-19 global pandemic on its portfolio.
The company reportedly filed a Form D to raise capital from investors in 2016. The total offering amount was purportedly $162,250,000.
According to filings with the SEC, The company said that the suspension will be temporary and that once the SRP fully reopens, any unprocessed requests will automatically roll over unless a stockholder withdraws the request five business days before to the next repurchase date.
At this point, the REIT reportedly intends to pay quarterly distributions for the first quarter of 2020 with operating cash flow, however, the board will make determinations on future distributions on a quarter-by-quarter basis, according to SEC filings.
Recovery of Investment Losses
The White Law Group is investigating FINRA arbitration claims involving broker dealers who may have improperly recommended non-traded REITs to investors.
Brokerage firms are required to perform due diligence on any investment they recommend. They must ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience. Given the current risk of devaluation of these REITs, such investments are likely only suitable for wealthy and/or sophisticated investors.
If you have suffered losses in a non-traded REIT such as Procaccianti Hotel REIT, please call the securities attorneys of The White Law Group at (888)637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on the firm, please visit https://www.whitesecuritieslaw.com.