Summit Healthcare REIT Tender Offer $0.60 per share
The White Law Group is investigating potential securities claims involving the liability that brokerage firms may have for recommending Summit Healthcare REIT to investors.
Summit Healthcare REIT, a publicly registered, non-traded real estate investment trust, invests in assisted living, memory care, and skilled nursing facilities throughout the United States.
According to SEC filings, CMG Partners, LLC and its affiliates, extended an unsolicited mini-tender offer in November 2020, to purchase shares of Summit Healthcare REIT, Inc. CMG offered to purchase up to 500,000 of Summit’s shares for just $0.60 per share in cash.
Summit Healthcare REIT claimed that shareholders should reject the offer as it “believes that CMG’s offer price is less than the current and potential long-term value of Summit’s shares.”
The REIT’s most recent valuation as of December 31, 2020 is $2.90 per share. The original offering price was $10.00 per share.
The Trouble with Non-Traded REITs
The trouble with non-traded REITs is that they are complex and inherently risky products.
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.
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.
Potential Lawsuits to Recover Financial Losses
If you have suffered losses investing in Summit Healthcare REIT, 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.