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RNY Property Trust (ASX:RNY) proposes $2.89M entitlement offer

Market News, Real Estate
ASX:RNY
13 September 2020 10:00 (AEST)

Huntley Management, the responsible entity of RNY Property Trust (RNY), plans to conduct a one-for-one non-renounceable entitlement offer.

The real estate investment trust company is hoping to raise up to $2.89 million at 1.1 cents per unit.

The entitlement offer will be conducted once the current takeover offer from Keybridge Capital (KBC) is closed. This is expected to happen on September 30 2020, unless it is extended.

Keybridge Capital is an investment and financial services group who, earlier this year, launched a takeover bid over RNY.

The entitlement offer will be underwritten by Aurora Funds Management who is a responsible entity for some substantial unit holders in RNY.

The $2.89 million will be used to satisfy RNY’s current liability obligations and general working capital.

A portion of the funds may also be lent to RNY Australia Operating Company LLC, which is RNY’s U.S. subsidiary.

RNY’s shares have been suspended from trading on the ASX since April 2019, when shares last traded for 0.5 cents.

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