Medalist Diversified REIT Prices $4.6 Million Underwritten Public Offering of Series A Preferred Stock

Medalist Diversified REIT, Inc. (Nasdaq: MDRR) (the “Company”), a Virginia-based real estate investment trust that specializes in acquiring, owning and managing value-add commercial real estate in the Mid-Atlantic and Southeast regions, announced today the pricing of its underwritten public offering with gross proceeds to the Company expected to be $4,600,000 before deducting underwriting discounts, commissions, and expenses. The proposed offering equates to 200,000 shares of the Company’s 8.0% Series A Cumulative Redeemable Preferred Stock, liquidation preference of $25.00 per share, at a public offering price of $23.00 per share. The Company has applied to list the Series A Preferred Stock on the Nasdaq Capital Market under the symbol “MDRRP." The offering is expected to close on or about February 19, 2020, subject to customary closing conditions. The Company intends to use the net proceeds from the offering to acquire additional properties, for working capital, for general corporate purposes, and to repay outstanding debt. In addition, a portion of the net proceeds from the offering in an amount equal to the first four quarterly dividends of the Series A Preferred Stock will be placed into an irrevocable escrow account with such funds to be released to the holders of Series A Preferred Stock upon the declaration of such dividends.

The Company has granted the underwriters a 45-day option to purchase up to an additional 15% of the number of shares of Series A Preferred Stock offered in the public offering to cover overallotments, if any.

Aegis Capital Corp. is acting as sole bookrunner for the offering and Maxim Group LLC is serving as the Company’s financial advisor.

The offering of these securities will be made only by means of a prospectus. A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.