Wheeler announces convertible preferreds may be settled with unregistered common stock

Chicago, Nov. 14 – Wheeler Real Estate Investment Trust Inc. announced that it may have to settle redemption requests of the company’s series D cumulative convertible preferred stock (Nasdaq: WHLRD) with unregistered common stock or delay delivery of registered common stock, according to a press release.

The reason for the announcement is that there has been a significant decline in the company’s common stock price.

Through Nov. 6, the company received 140 fully complete and timely redemption requests, collectively redeeming 492,673 shares of outstanding series D preferred stock.

Redemptions were settled by issuing 16,601,314 shares of common stock.

There are 2,887,273 shares of series D preferred stock outstanding.

For the October redemptions, the lowest price at which any series D preferred stock was converted by a holder into common stock was approximately $2.89. Between that date and the November redemption date, the common stock price fell considerably with the result that for the November redemptions, the lowest price at which any series D preferred stock was converted by a holder into common stock was approximately $0.84.

The company’s common stock started the year at $14.10 per share but has been on a steady decline since approximately March, losing 98.27% year to date. The company’s closing stock price on Tuesday was $0.24 per share.

The company said that if the downward trajectory continues, the company will not have enough registered common stock to issue from its registration statement and will instead have to issue unregistered common stock to settle redemption requests or delay delivery of registered common stock pending Securities and Exchange Commission clearance of a new registration statement for additional shares.

Wheeler is based in Virginia Beach.

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