Tender Offer Price Suggests Financial Losses for Investors
Did you lose money in Phillips Edison & Company Inc. (fka Phillips Edison Grocery Center REIT I, Inc.) at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA dispute resolution claim against your brokerage firm.
According to filings with the SEC last week, Phillips Edison & Company Inc., a publicly registered non-traded REIT, has reportedly announced the preliminary results of a recent tender offer extended to investors. The company reportedly tendered 13.5 million shares at $5.75 per share for $77.7 million.The offer expired on December 29, 2020.
Phillips Edison’s board of directors reportedly approved a one-for-four reverse stock split last November indicating that every four shares of issued and outstanding common stock will be automatically combined and converted into one share of common stock.
The reverse stock split is expected to take place around March 9, 2021 and the shares will reportedly have an initial net asset value per share of $35.00. The company noted that the common stock will have a new CUSIP number.
Monthly distributions and the dividend reinvestment plan were recently reinstated by the board. Stockholders participating in the DRIP can reinvest their monthly distributions at the current NAV per share of $8.75, starting with the upcoming distribution.
Shares of the REIT were originally sold for $10.00 per share.
Recovery of Investment Losses
The trouble with non-traded REITs, like Phillip Edison & Company Inc., is that they are complex and inherently risky products.
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.
Filing a Complaint against your Brokerage Firm
If you have suffered losses investing in Phillips Edison & Company Inc., please contact The White Law Group at 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.