Power REIT Enters into Sales Agreement with A.G.P. for At-the-Market Offering

On January 24, 2025, Power REIT filed a Form 8-K with the Securities and Exchange Commission, detailing its recent agreement with A.G.P./Alliance Global Partners (“A.G.P.”) for an at-the-market offering. This agreement allows Power REIT to issue and sell its common shares, par value $0.001 per share, through A.G.P. as the sales agent.

According to the agreement, sales of common shares will be conducted in compliance with Rule 415(a)(4) under the Securities Act of 1933. A.G.P. is not obligated to sell any specific amount of common shares but will act as sales agent on a commercially reasonable efforts basis. A.G.P. is entitled to a fixed commission rate of 3.0% of the gross proceeds of each sale, deemed as underwriting compensation.

The sales agreement specifies that upon the completion of selling all common shares outlined in the prospectus or upon termination of the agreement, the offering will cease. Power REIT retains the right to terminate the agreement at its discretion with a two-day notice to A.G.P. or vice versa. The company clarified that this report does not constitute an offer to sell or a solicitation to buy common shares where such actions would be unlawful.

In a separate item, Power REIT shared updates on its business in the forthcoming ATM Prospectus and related registration statement on Form S-3. The company detailed its ownership of real estate assets related to transportation, energy infrastructure, and Controlled Environment Agriculture (“CEA”). As of September 30, 2024, Power REIT’s assets encompassed railroad infrastructure, utility-scale solar power generating projects, and CEA properties in the form of greenhouses.

Continuing, Power REIT outlined its recent focus on greenhouses as a sustainable approach to crop cultivation, primarily geared towards state-licensed cannabis and food production. However, the greenhouse portfolio has encountered challenges, leading to significant vacancies. Currently, efforts are underway to market the greenhouse portfolio for sale amidst a subdued property market.

As the company pivots to explore new opportunities, it aims to leverage the current real estate market conditions, identifying potential investments in distressed assets, debt, and other secured interests. Power REIT intends to selectively raise capital to advance its strategic initiatives, pivoting towards promising opportunities in the changing real estate landscape.

Alongside this announcement, Power REIT disclosed the Sales Agreement with A.G.P., dated January 24, 2025, as filed in Exhibit 1.1 of the Form 8-K. Moreover, the company indicated the inclusion of a Cover Page Interactive Data File (embedded within the Inline XBRL document) as part of the submission.

This signifies Power REIT’s strategic moves in response to market dynamics and highlights its proactive stance towards exploring new avenues for growth and investment opportunities.

In light of these developments, potential investors and market observers are keen to see how Power REIT’s strategic shifts and investment focus will unfold in the evolving real estate environment.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Power REIT’s 8K filing here.

About Power REIT

Power REIT, with a focus on the Triple Bottom Line and a commitment to Profit, Planet and People is a specialized real estate investment trust (REIT) that owns sustainable real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy and Transportation.