Resource Income Opportunity REIT to Liquidate
May 8, 2018 | James Sprow | Blue Vault
On May 7, 2018, the board of directors (the “Board”) of Resource Income Opportunity REIT, Inc. unanimously approved the termination of its continuous initial public offering of shares of the Company’s common stock. On the same date, the Board authorized the deregistration of all shares of common stock which remain unsold under the Registration Statement.
On May 7, 2018, the Board took the following actions:
The Board unanimously approved the termination of the DRIP. On May 8, 2018, the Company’s stockholders, by unanimous written consent, waived the ten days’ written notice requirement. Accordingly, the termination became effective on May 8, 2018.
The Board unanimously approved the termination of the share repurchase programs or SRP. On May 8, 2018, the Company’s stockholders, by unanimous written consent, waived the thirty days’ written notice requirement. Accordingly, the termination became effective on May 8, 2018.
The Board unanimously approved the termination of the Incentive Plan for officers and employees, effective that same date.
In connection with the termination of the Company’s initial public offering, the Board authorized the repurchase of the 7,043.32 vested shares of the Company’s common stock which were held by members of Board at an aggregate repurchase price equal to $68,389.88 (approximately $9.71 per share); all non-vested shares held by the members of the Board were forfeited.
On May 7, 2018, in connection with the termination of the Company’s initial public offering, the Board unanimously (i) determined that it was in the best interests of the Company to liquidate and dissolve; and (ii) adopted a plan of complete liquidation and dissolution (the “Plan”) to be submitted to the Company’s stockholders for approval. On May 8, 2018, the Company’s stockholders, by unanimous written consent, approved the Plan.
Pursuant to the Plan, the Company shall be voluntarily liquidated and dissolved as soon as practicable, and the proper officers of the Company shall perform such acts, execute and deliver such documents and do all things as may be reasonably necessary or advisable to complete such liquidation and dissolution.
As of December 31, 2017, the Company had total assets of $13.25 million and total liabilities of $14.55 million, with a total net worth of negative $1.30 million. Its real estate investments totaled $6.87 million. Among its listed assets were deferred offering costs of $5.55 million. The Company had a comprehensive loss in 2017 of $1.20 million following a loss of $1.52 million in 2016.
Blue Vault estimates that any proceeds to shareholders in the REIT will be dependent upon the liquidation of the Company’s single real estate investment (Sunnyside office property in Chicago, Illinois, purchased in 2016 for $7.25 million) and the treatment of the deferred offering costs.
Source: SEC 8-K filing May 7, 2018, Blue Vault
Learn more about Resource on the Blue Vault Sponsor Focus page
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