Business Context and Reporting Period
Company: Cherry Hill Mortgage Investment Corp
Filing Type: Form 8-K (Current Report)
Date of Report: August 31, 2018
Event: Entry into Material Definitive Agreements for an "at-the-market" equity offering.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It is a disclosure of a new financing arrangement rather than a periodic financial report.
- Proposed Offering Size: Up to $50,000,000 of common stock.
- Commission Rate: 2.0% of gross proceeds.
- Stock Par Value: $0.01 per share.
Material Changes
On August 31, 2018, the Company entered into separate At Market Issuance Sales Agreements with JMP Securities LLC and B. Riley FBR, Inc. These agreements authorize the Company to sell up to $50 million of common stock through the agents as principals or agents. This represents a new authorization for capital raising distinct from previous agreements.
Guidance, Outlook, and Risks
Management Commentary: The Company has no obligation to sell any shares under the new agreements. Sales will be made at prevailing market prices as deemed appropriate by the Company and the agents.
Related Agreements: The agents are also under separate agreements dated April 5, 2018, to sell up to $35,000,000 of the Company's 8.20% Series A Cumulative Redeemable Preferred Stock.
Risks and Contingencies: The Company agreed to indemnify the agents against certain liabilities under the Securities Act. The filing notes that the report does not constitute an offer to sell in jurisdictions where such an offer would be unlawful.
Investor Verification Checklist
- Verify the current market price of the common stock to assess potential dilution from the $50 million offering.
- Review the Company's existing cash position and debt levels to understand the necessity of this equity raise.
- Check the status of the prior $35 million preferred stock offering to gauge total capital raised via these agents.
- Confirm the total number of shares outstanding to calculate the percentage increase in share count if the full $50 million is sold.