ACRES Commercial sets $50M stock sale program
ACRES Commercial Realty Corp. set up new common and preferred stock ATM programs under its shelf registration, replacing a prior preferred stock arrangement.
Rhea-AI Filing Summary
ACRES Commercial Realty Corp. (ACR) established new equity distribution agreements to sell its securities in at-the-market programs. The company may sell up to $50 million of common stock through Raymond James & Associates, Inc. and up to 2,980,000 Series C and 2,192,143 Series D preferred shares through Seaport Global Securities LLC, each with a sales commission not exceeding 2.0% of gross sales price. These securities are registered under the company’s existing Form S-3 shelf registration and related prospectus and prospectus supplements.
The new preferred stock equity distribution agreement replaces a prior agreement with Jones Trading, under which only 7,857 of the authorized 2,200,000 Series D preferred shares had been sold before its termination.
Positive
- None.
Negative
- None.
8-K Event Classification
3 items: 1.01, 1.02, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 1.02
Termination of a Material Definitive Agreement
Business
A significant contract was terminated, which may affect business operations or revenue.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Common stock ATM capacity: $50 million
Series C Preferred Shares ATM capacity: 2,980,000 shares
Series D Preferred Shares ATM capacity: 2,192,143 shares
+3 more
6 metrics
Common stock ATM capacity
$50 million
Maximum aggregate offering amount of common stock under the new Equity Distribution Agreement
Series C Preferred Shares ATM capacity
2,980,000 shares
Maximum 8.625% Series C Preferred Stock issuable under the new preferred Equity Distribution Agreement
Series D Preferred Shares ATM capacity
2,192,143 shares
Maximum 7.875% Series D Preferred Stock issuable under the new preferred Equity Distribution Agreement
Sales agent commission rate
2.0% of gross sales price
Maximum commission payable on both common and preferred stock ATM sales
Prior Series D ATM capacity
2,200,000 shares
Series D Preferred Stock that could have been sold under the prior Jones Trading agreement
Series D sold under prior agreement
7,857 shares
Series D Preferred Stock actually sold before termination of the prior preferred equity distribution agreement
Key Terms
Equity Distribution Agreement, at-the-market offerings, Cumulative Redeemable Preferred Stock, prospectus supplement, +1 more
5 terms
Equity Distribution Agreement financial
"entered into an Equity Distribution Agreement between the Company and Raymond James"
An equity distribution agreement is a formal plan between a company and financial institutions to sell newly issued shares of the company's stock to investors over a period of time. It helps the company raise money gradually, similar to filling a container with water in stages, rather than all at once. For investors, it provides an organized way to buy shares and can influence the stock's supply and price.
at-the-market offerings financial
"may be offered and sold through the Common Sales Agent in transactions deemed to be “at-the-market” offerings"
An at-the-market offering is a method for a company to sell new shares of its stock directly into the stock market over time, rather than all at once. This approach allows the company to raise money gradually, similar to selling small portions of a product as demand grows. For investors, it can influence stock availability and price, making it an important factor to consider when assessing a company's financial strategy.
Cumulative Redeemable Preferred Stock financial
"8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock"
Cumulative redeemable preferred stock is a type of investment that gives shareholders priority over common stockholders to receive dividends and get their money back if the company is sold or closes. If the company misses dividend payments, it must pay them later before any dividends can go to other shareholders. This makes it a more secure and flexible option for investors seeking steady income with some ability to redeem their shares in the future.
prospectus supplement regulatory
"as supplemented by the prospectus supplement, dated September 3, 2026"
A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.
Form S-3 regulatory
"registration statement on Form S-3 (No. 333-278433)"
Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.
Offering Details
ATM
Offering
Offering Type
ATM
FAQ
What new common stock ATM program did ACRES Commercial Realty Corp. (ACR) establish?
ACRES Commercial Realty Corp. may sell up to $50 million of its common stock through an Equity Distribution Agreement with Raymond James & Associates, Inc. Sales may be made as at-the-market offerings or negotiated transactions under the company’s Form S-3 shelf registration.
What preferred stock can ACR sell under the new ATM program?
The company may sell up to 2,980,000 shares of 8.625% Series C and up to 2,192,143 shares of 7.875% Series D Cumulative Redeemable Preferred Stock through Seaport Global Securities LLC, under a new Equity Distribution Agreement.
What commissions will ACR pay on sales under these ATM programs?
For both the common and preferred stock Equity Distribution Agreements, ACRES Commercial Realty Corp. will pay the respective sales agents a commission not to exceed 2.0% of the gross sales price of shares sold through them.
Which registration statement covers the ACR ATM offerings?
Shares sold under both the common and preferred stock Equity Distribution Agreements will be issued pursuant to ACRES Commercial Realty Corp.’s Form S-3 registration statement No. 333-278433, with a related prospectus dated April 1, 2024 and prospectus supplement dated September 3, 2026.
Which prior agreement did ACR terminate in connection with the new preferred stock ATM?
On August 31, 2026, the company gave notice terminating its prior equity distribution agreement with Jones Trading Institutional Services LLC, effective September 1, 2026, which had covered up to 2,200,000 Series D preferred shares.
AI-generated analysis. How Rhea-AI works. Not financial advice.
