Business Context and Reporting Period
This Form 8-K is a current report filed by Five Oaks Investment Corp. (not Lument Finance Trust, Inc., as indicated in the metadata) on October 13, 2017. The registrant is a Maryland corporation and an emerging growth company. The report details the entry into material definitive agreements regarding a new equity distribution program.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on the authorization of a capital raising mechanism.
Material Changes and Agreements
- Equity Distribution Agreements: On October 13, 2017, the Company entered into agreements with JMP Securities LLC and Ladenburg Thalmann & Co. Inc. (the "Agents").
- Offering Size: The Company may offer and sell shares of common stock with an aggregate offering price of up to $50,000,000.
- Method: The program is an "at-the-market" offering, allowing sales through ordinary brokers' transactions on the New York Stock Exchange at prevailing market prices.
- Compensation: Agents are entitled to compensation of up to 2% of the gross sales price of shares sold.
- Obligation: Neither the Company nor the Agents are obligated to sell any shares; the Company determines the timing and amounts of sales.
Guidance, Outlook, and Risks
The filing does not provide specific financial guidance or outlook. The primary risk disclosed is the discretionary nature of the offering; the Company may choose not to sell any shares, and the agreements may be terminated by either party at any time. The offering is subject to customary representations, warranties, and conditions.
Key Facts for Investor Verification
- Verify the actual number of shares sold and proceeds raised under this $50 million program in subsequent filings (e.g., Forms 10-Q or 10-K).
- Confirm the impact of the 2% commission on net proceeds if significant sales occur.
- Review the Company's effective shelf registration statement (Form S-3, No. 333-215234) for the full terms of the prospectus.
- Note the discrepancy between the metadata company name (Lument Finance Trust) and the filing registrant (Five Oaks Investment Corp.).