LAS VEGAS, Aug. 27, 2021 /PRNewswire/ -- The Parking REIT, Inc. ("The Parking REIT" or the "Company") announced today that an affiliated entity of Bombe Asset Management LLC, a Cincinnati, Ohio based alternative asset management firm ("Bombe"), has completed its $125 million investment in the Las Vegas-headquartered company. The investment, originally announced in January 2021, called for an investment of $35 million in cash plus the contribution of parking assets and other property valued at more than $90 million in exchange for operating partnership units valued at $11.75 per unit and warrants to purchase The Parking REIT common stock.
As part of the transaction, Bombe's affiliate acquired 1,549,324 shares of common stock of The Parking REIT at $11.75 per share from Vestin Realty Mortgage I, Inc., Vestin Realty Mortgage II, Inc. and Michael V. Shustek (collectively, the "Advisor") and the Advisor's affiliates.
The Advisor also surrendered its claim to 400,000 shares of common stock due to the Advisor from The Parking REIT on December 31, 2021, and contributed 175,000 shares of common stock to a settlement fund. Proceeds from the purchase of the shares from the settlement fund will be used for the benefit of the Company's common stockholders. The settlement fund was created as part of the settlement of three class action lawsuits in which The Parking REIT was named as a defendant.
Michael V. Shustek has stepped down as a director and officer of The Parking REIT, effective immediately. Manuel Chavez will serve as the Chairman of the Board and Chief Executive Officer of The Parking REIT and Stephanie Hogue will serve as President of The Parking REIT.
Effective August 25, 2021, The Parking REIT's Board of Directors elected Jeffrey Osher, Lorrence Kellar, Damon Jones, Danica Holley, Manuel Chavez, and Stephanie Hogue as new members of the Company's Board of Directors. Mr. Osher is the founder and Managing Member of the hedge fund No Street Capital LLC. Mr. Kellar, formerly an executive with Kmart and Kroger, is member of the board of directors of each of Acadia Realty Trust and The Spar Group. Mr. Jones serves as the Chief Communications Officer at The Procter & Gamble Company, a position he has held since March 2020. Ms. Holley has served as Global Medical REIT's Chief Operating Officer since March 30, 2016. Shawn Nelson, a member of The Parking REIT Board since 2017 and the independent committee that elected to move forward with the transaction, remains a member of The Parking REIT Board.
As previously announced, a tender offer will commence promptly to purchase, subject to the offer conditions, up to 900,506 of The Parking REIT's outstanding shares of common stock for $11.75 per share in cash. Offering materials to The Parking REIT's stockholders describing the tender offer's terms and conditions will be distributed accordingly.
About The Parking REIT, Inc. The Parking REIT, Inc. is an internally-managed, publicly registered, non-listed real estate company that invests primarily in parking lots and garages in the United States. Its post-transaction assets include 40 parking facilities located in 16 states. For more information, please visit TheParkingREIT.com.
About Bombe Asset Management Bombe Asset Management is a privately-held alternative asset management company specializing in the optimization of infrastructure, transportation, and distribution real estate assets. It is headquartered in Cincinnati, Ohio.
Additional Information and Where to Find It This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Bombe will file tender offer materials with the Securities and Exchange Commission ("SEC") and the Company will file a Solicitation/Recommendation Statement with respect to the tender offer. The tender offer materials (including an Offer to Purchase, a related Letter of Transmittal and certain other offer documents) and the Solicitation/Recommendation Statement will contain important information, which should be read carefully before any decision is made with respect to the tender offer. INVESTORS ARE URGED TO READ THE TENDER OFFER DOCUMENTS, THE SOLICITATION / RECOMMENDATION STATEMENT AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of the tender offer materials (including an Offer to Purchase, a related Letter of Transmittal and certain other offer documents), the Solicitation/Recommendation Statement and other relevant documents filed by the Company with the SEC at the SEC's website at www.sec.gov. Copies of the documents filed by the Company with the SEC will be available free of charge on the Company's website at TheParkingREIT.com or by directing a written request to The Parking REIT, Inc.
Forward-looking statements The information contained in this press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "believe," "could," "project," "predict," "continue" or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition or state other forward-looking information. Statements, among others, relating to The Parking REIT's ability to complete the announced transaction and generate future growth and deliver returns are forward-looking statements, and The Parking REIT cannot assure you that it will achieve such results. The ability of The Parking REIT to predict future events or conditions or their impact or the actual effect of existing or future plans or strategies is inherently uncertain, in particular due to the uncertainties created by the COVID-19 pandemic. Although The Parking REIT believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, The Parking REIT can give no assurance that the expectations will be attained or that any deviation will not be material. Actual results may differ materially from those contemplated by such forward-looking statements, including as a result of those factors set forth in the Risk Factors section of the Company's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. Additional risks and uncertainties include, but are not limited to: the parties' ability to recognize the benefits of investments generally, including potential synergies; failure of an investment to achieve its plans and objectives generally; risk that proposed investments may disrupt operations or pose difficulties in employee retention or otherwise affect financial or operating results. Forward-looking statements speak only as of the date they are made, and The Parking REIT undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. You are cautioned not to place undue reliance on these forward-looking statements, which reflect The Parking REIT's view only as of the date of this press release.