First Capital Real Estate Trust Incorporated, a publicly registered non-traded real estate investment trust, has closed the initial phase of its transaction with PhotoMedex Inc. (NYSE: PHMD).
In exchange for contributing various real property interests, First Capital was issued 879,234 shares of PhotoMedex common stock and 123,668 shares of newly designated non-voting PhotoMedex Series A preferred stock.
The Series A preferred stock is convertible into shares of PhotoMedex common stock at a ratio of 25 shares of PhotoMedex common stock for each share of Series A preferred stock. The PhotoMedex common stock issued to First Capital represented approximately 20 percent of the outstanding voting power of PhotoMedex.
Suneet Singal, chief executive officer of First Capital Real Estate Trust, was also appointed as chief executive officer of PhotoMedex and became a member of its board of directors. Stephen Johnson, who joined the REIT as chief financial officer last month, resigned to become the CFO of PhotoMedex.
“The closing of this initial transaction with PhotoMedex represents an important milestone for First Capital,” said. Singal. “We remain committed to advancing our core strategy to create value and deliver a path to liquidity for our investors.”
Last month, First Capital also announced that it is moving forward with its previously announced strategic transaction with Presidential Realty Corporation (OTC: PDNLA/PDNLB), a multifamily REIT.
The REIT, through its operating partnership, will transfer 66 percent of its 92 percent ownership interest in Township Nine Owner LLC to a wholly-owned subsidiary of Presidential OP. Township Nine indirectly owns a 63-acre mixed-use development project located in downtown Sacramento, California.
Presidential OP agreed to issue approximately 32.6 million OP units to First Capital in exchange for the T9 ownership interest. That issuance of the units is subject to a hold-back requirement until certain conditions are met, including an appraisal of the ownership interest and a work out of the mortgage debt secured by the underlying property, which is currently in default.
First Capital Real Estate Trust Incorporated is a public non-traded REIT based in New York City and founded in 2012. First Capital’s portfolio consists of 27 assets including land development, multifamily development, gas station development, hotels and medical offices.