Griffin Capital Essential Asset REIT, Inc. Temporarily Suspends Primary Offering, SRP and DRP

February 28, 2020 | James Sprow | Blue Vault

In connection with a potential strategic transaction, on February 26, 2020, Griffin Capital Essential Asset REIT, Inc.‘s (the “Registrant”) board of directors (the “Board”) approved the temporary suspension of (i) the primary portion of the Registrant’s follow-on offering (the “Primary Offering”), effective February 27, 2020; (ii) the Registrant’s share redemption program (“SRP”), effective March 28, 2020; and (iii) the Registrant’s distribution reinvestment plan (“DRP”), effective March 8, 2020.

The Board believes that it would be in the best interest of the Registrant and its stockholders to temporarily suspend the Primary Offering to allow the Registrant to evaluate a potential strategic transaction. The Registrant’s policy will be to accept subscription agreements only if they are signed and dated on or before the close of business on February 27, 2020. The accounts must be fully funded and in good order no later than the close of business on February 28, 2020.

The Current Report on Form 8-K serves as the 30 days’ notice of the suspension of the SRP per the terms of the program, and the 10 days’ notice of the suspension of the DRP per the terms of the plan.

The SRP shall be officially suspended as of March 28, 2020, and no redemptions will be honored for the first quarter of 2020 other than redemptions sought upon a stockholder’s death, qualifying disability, or determination of incompetence or incapacitation which will be honored in accordance with the terms of the SRP.

Due to the suspension of the DRP as of March 8, 2020, all subsequent distributions, other than the stock distribution declared by the Board on December 18, 2019, to be paid on April 1, 2020, will be paid in cash.

The SRP and DRP shall remain suspended until such time, if any, as the Registrant’s Board may approve the resumption of the SRP and DRP.

Source:  SEC