Bluerock Capital Markets, a distributor of institutional alternative investment products, announced that certain tranches of the warrants sold as units alongside Bluerock Residential Growth REIT’s Series B Redeemable Preferred Stock, are now exercisable and “in the money.”
In addition to the 6 percent annualized preferred dividend, shareholders can now exercise the warrants associated with Bluerock Residential Growth REIT’s publicly traded Class A common stock (NYSE: BRG).
Each exercisable warrant allows the holder to purchase 20 shares of BRG Class A common stock at an exercise price that is set at a 20 percent premium to the market price per share of the company’s Class A common stock when the holder acquired its Series B Redeemable Preferred Stock.
“The structure provides Series B Preferred shareholders with an attractive income investment opportunity on their Series B Redeemable Preferred Stock, plus an opportunity to participate in the growth of the underlying REIT via the accompanying warrants,” said Jeffrey Schwaber, CEO of Bluerock Capital Markets.
BRG’s Class A common stock total return was 51 percent year-over year, ending February 28, 2019. Shares opened at $10.57 on Friday and closed at $10.62.
Bluerock Residential Growth REIT is a publicly traded real estate investment trust that focuses on developing and acquiring a diversified portfolio of apartment communities and reports assets in excess of $2+ billion and more than 14,700 apartment units.
Headquartered in Manhattan with regional offices across the U.S., Bluerock through its subsidiaries and affiliates is an institutional alternative asset manager with more than $6 billion of assets under management.