Business Context and Reporting Period
Medalist Diversified REIT, Inc. (MDRR) filed a Current Report on Form 8-K dated June 21, 2019. The filing addresses the termination of a material definitive agreement regarding a real estate acquisition.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, or cash flow data. Specific financial details related to the transaction include:
- Proposed Purchase Price: $10,501,001 for a 148-room hotel in Clemson, South Carolina.
- Termination Penalties: $0 (No penalties incurred).
- Outstanding Deposit: $50,000 earnest money deposit currently held by the seller.
Material Changes
The Company terminated the Purchase and Sale Agreement (PSA) entered into on May 24, 2019, for the acquisition of the Best Western Plus University Inn & Conference Center Clemson. This termination occurred on June 21, 2019, as permitted under the PSA terms.
Outlook, Risks, and Management Commentary
Management indicated that while the PSA was terminated, the Company remains in negotiations with the seller (Heri AUM LLC) to reinstate the agreement. Consequently, the Company has not yet requested the return of the $50,000 earnest money deposit. The filing notes no penalties were incurred due to the termination.
Investor Verification Checklist
- Confirm the status of negotiations to reinstate the PSA for the Clemson hotel acquisition.
- Verify the timeline and conditions for the return of the $50,000 earnest money deposit.
- Review the May 29, 2019 Form 8-K for the original terms of the Purchase and Sale Agreement.