Business Context and Reporting Period
This Form 8-K Current Report was filed by Inpoint Commercial Real Estate Income, Inc. on June 5, 2018. The filing reports on unregistered sales of equity securities completed in May 2018 as part of an ongoing private placement offering.
Key Financial Metrics
- Recent Transaction: Approximately 393,131 shares of Class P common stock were sold for an aggregate purchase price of approximately $10,664,816.
- Offering Status: The Company has sold a total of approximately 3,116,410 Class P Shares to date, generating total gross proceeds of approximately $83,851,773.
- Share Pricing: The transaction price is $25.00 per share. The maximum total initial purchase price, including fees and expenses, is $27.38 per share.
- Offering Cap: The private placement targets up to $500 million in Class P Shares.
Material Changes
The filing details the completion of a specific tranche of share sales in May 2018, increasing the total capital raised under the offering that commenced on October 25, 2016. No other material changes to operations or financial condition are reported in this specific filing.
Guidance, Outlook, and Risks
The Company is conducting the offering pursuant to Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D. All purchasers have represented they are accredited investors acquiring shares for investment purposes only. The filing notes that selling commissions (up to 5.0%) and dealer manager fees (up to 3.0%) are paid to the affiliated dealer manager, Inland Securities Corporation, though volume discounts and fee reductions may apply for certain investors.
Investor Verification Checklist
- Verify the current net asset value (NAV) per Class P Share, as the $25.00 transaction price applies only until the NAV is determined.
- Confirm the total amount raised to date against the $500 million offering cap to assess remaining capacity.
- Review the specific fee structure applicable to the investor's purchase, including potential volume discounts or fee waivers for affiliated parties.
- Ensure the investor qualifies as an "accredited investor" under Regulation D, as required for participation in this offering.