Regency Affiliates, Inc. Today Announced that it has Commenced an Offering of Common Stock to its Stockholders

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Mar 16, 2016, 09:44 ET

NEW YORK, March 16, 2016 /PRNewswire/ -- Regency Affiliates, Inc. (OTC Pink: RAFI) ("Regency" or the "Company") today announced that it has commenced an offering of common stock to its stockholders of record as of January 22, 2016 who are accredited investors as defined in Rule 501 of Regulation D under the Securities Act of 1933. Regency is offering up to 1,212,121 shares of its common stock to such stockholders at a purchase price of $8.25 per share. If all 1,212,121 shares available in the offering are subscribed for and sold, the shares issued pursuant to the offering will represent approximately 24.8% of the common stock outstanding immediately following the offering, with approximately $10,000,000 of gross proceeds raised in the offering.

The shares available in the offering are being offered to accredited record stockholders on a pro-rata basis, with over-subscription rights in the event that any stockholders subscribe for less than their pro-rata investment allocation. There is no minimum level of participation required for the offering to be consummated, and the offering may be terminated by the Company without the sale of any shares. The offering is set to expire on April 7, 2016, but may be extended at the discretion of the Company.

Royalty Holdings LLC and its affiliates, including our Chief Executive Officer, holding approximately 56% of the Regency's outstanding common stock in the aggregate, have indicated their intention to subscribe for 616,124 shares of common stock in the aggregate, for an aggregate purchase price of $5,083,023.

Regency intends to use the net proceeds of the offering to fund one or more future investment opportunities that may become available to the Company from time to time. Unless and until used in connection with one or more new investment opportunities, the proceeds of the offering will be available to the Company for general corporate purposes, including working capital, maintenance of current investments, exploration of additional investments and to fund Company expenses

Stockholders of record as of January 22, 2016 interested in participating in the offering should carefully review the Confidential Private Placement Memorandum and related offering documents, which together contain the terms and conditions of the offering. Copies of such materials were mailed to stockholders of record on March 10, 2016. Copies may also be obtained by contacting the Company.

About Regency

Regency invests in assets that generate attractive, predictable and sustainable returns on capital. We currently own two assets:

An indirect 50% interest in the 717,000 square foot facility Security West complex located on 34.3 acres in Woodlawn, Maryland. The facility is occupied under a lease expiring in 2018 by the United States Social Security Administration; and
An indirect 50% interest in Mobile Energy which owns and operates an energy facility located on approximately 11 acres of land in Mobile, Alabama. The facility supplies up to 61 megawatts of co-generated steam and electricity for use in the Kimberly-Clark's mill's operations under a 15 year agreement signed in 2004.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements are statements that are predictive in nature or depend on or refer to future events and can be identified by the words "may," "might," "will," "should," "anticipate," "believe," "expect," "intend," "estimate," "hope," or similar expressions. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, a default or catastrophe involving the properties in which we invest, the extent to which we are able to raise additional capital, including in the offering described herein, and competition for additional investment opportunities. We undertake no obligation to update or revise any forward looking statement, whether as a result of new information, future events or otherwise. For a more detailed description of these uncertainties and other factors, please see our website at www.regencyaffiliates.com.

SOURCE Regency Affiliates, Inc.