Modiv’s Crowdfunded REIT Launches SPAC
Modiv Inc., a publicly registered non-traded crowdfunded real estate investment trust formerly known as RW Holdings NNN REIT Inc. and Rich Uncles NNN REIT Inc., has a filed registration statement for a special-purpose acquisition company dubbed Modiv Acquisition Corp.
Modiv Inc., a publicly registered non-traded crowdfunded real estate investment trust formerly known as RW Holdings NNN REIT Inc. and Rich Uncles NNN REIT Inc., has filed a registration statement for a special-purpose acquisition company dubbed Modiv Acquisition Corp.
Yesterday, Modiv Acquisition Corp launched its initial public offering of 10 million units and applied to have its units approved for listing on the NYSE American under the symbol “MACS.U.” Each unit is priced at $10.00 and will consist of one share of Modiv Acquisition Corp common stock and one redeemable warrant to purchase one-half share of common stock.
Modiv Acquisition Corp is a newly organized blank-check company formed by Modiv Venture Fund LLC, a subsidiary of Modiv Inc., for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or assets.
According to the registration statement, Modiv Acquisition Corp intends to focus on targets located in North America that are focused on fintech and proptech, with a focus on companies whose core purpose is related to the real estate industry.
Within those parameters, the SPAC plans “to pursue a business combination with companies that use technology driven platforms and solutions to disrupt or revolutionize the real estate capital markets, transactional marketplaces and investment management industry.”
“Modiv’s sponsorship of [Modiv Acquisition Corp] reflects its continued commitment to innovation and its investor-first focus,” the company said in a statement. “Until [Modiv Acquisition Corp] completes its IPO, Modiv is limited by federal securities laws in the information it can discuss regarding its sponsorship of [the] SPAC.”
Chardan Capital Markets LLC is serving as the underwriter for the offering. MAC SPAC intends to grant the underwriter a 45-day option to purchase up to an additional 1.5 million units at the initial public offering price, less the underwriting discount, to cover over-allotments, if any.
Modiv, a REIT funded through a fintech crowdfunding platform, was founded in 2015 and has approximately $400 million in total assets under management. As of December 31, 2020, the REIT’s real estate investment portfolio consisted of 40 properties in 14 states, including 15 retail, 14 office, and 11 industrial properties, and a 72.7 percent tenant-in-common interest in an office property.
