Griffin Raises $27.2 Million in Equity Private Placement to Accelerate Growth Plan
Raised $27.2 million of proceeds through a private placement involving common equity and warrants
- First equity capital raise in Griffin’s history as a public company
- New capital to accelerate Griffin’s acquisition strategy in the logistics sector
NEW YORK, Aug. 24, 2020 (GLOBE NEWSWIRE) -- Griffin Industrial Realty, Inc. (Nasdaq: GRIF) (“Griffin” or the “Company”) today announced that the Company has completed a private placement transaction with an investment entity managed by Cambiar Management LLC (“Cambiar”) to raise approximately $27.2 million of new capital. The Company sold 504,590 unregistered shares of its common stock (the “Common Stock”) at a purchase price of $50.00 per share and warrants to acquire an additional 504,590 shares of Common Stock with an exercise price of $60.00 per share at a purchase price of $4.00 per warrant share (the “Private Placement”). The warrants may be exercised at any time prior to the third anniversary of issuance, and if they are exercised in full, Griffin would receive approximately $57.5 million of aggregate gross proceeds from the Private Placement. The proceeds from the Private Placement will be used to finance the Company’s acquisition and development pipeline as well as for general working capital.
The transaction represents the first equity capital raise in Griffin’s twenty-three-year history as a public company. Michael Gamzon, President and Chief Executive Officer of Griffin, noted “We are pleased to fund our expected future growth by issuing common equity at an attractive price relative to recent trading levels. The transaction also provides for the possibility of raising additional equity at a significant premium to today’s price. We believe the investment by our new strategic partner, Cambiar, expresses confidence in our strategy and the future direction of our business.”
In March 2020, as part of Griffin’s plan to accelerate growth and increase shareholder value, the Company announced the appointment of Gordon DuGan to the role of Chairman and the intention to convert to a Real Estate Investment Trust (“REIT”) at the beginning of 2021. As a continuation of this strategy, Griffin intends to invest in acquisitions and developments of well-located, flexibly designed industrial/warehouse properties. The Company’s strategy is focused on select high-growth, supply-constrained markets that that can meet multiple drivers of demand within the modern supply chain including local, regional and/or multi-market distribution.