Business Context and Reporting Period
Medalist Diversified REIT, Inc. (MDRR) filed a Form 8-K on September 27, 2019, reporting the completion of an asset acquisition. The Company is a Maryland corporation listed on the Nasdaq Capital Market.
Key Financial Metrics
This filing reports a specific transaction rather than periodic financial performance. The acquisition of the Clemson Best Western hotel was completed for a purchase price of $9,750,000, exclusive of closing costs. The filing text does not provide clear values for the Company's overall revenue, profit, cash flow, margins, debt, or liquidity as of this date.
Material Changes
- Asset Acquisition: The Company acquired the Clemson Best Western, a 148-room hotel located in Clemson, South Carolina.
- Transaction Counterparty: The asset was purchased from Heri AUM LLC, an unaffiliated seller.
- Ownership Structure: The acquisition was executed through the Company's operating partnership, Medalist Diversified Holdings, L.P.
Outlook, Risks, and Unusual Items
Historical financial statements for the acquired property and pro forma financial information are not included in this initial report. The Company indicated these documents will be filed in an amendment to this Form 8-K on or before December 13, 2019. No other risks, contingencies, or unusual items were disclosed in this specific filing.
Investor Verification Checklist
- Verify the final purchase price including any closing costs not detailed in the $9,750,000 figure.
- Review the upcoming amendment (due by December 13, 2019) for historical financials of the Clemson Best Western.
- Examine the pro forma financial information to understand the impact of this acquisition on the Company's consolidated results.
- Confirm the financing structure used to fund the $9,750,000 acquisition.