Sachem Capital Corp.

06/23/2021 | Press release | Distributed by Public on 06/23/2021 15:35

Sachem Capital Corp. Prices Offering of Preferred Stock

June 23, 2021

BRANFORD, Conn., June 23, 2021 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) today announced that it has priced an underwritten public offering of 1,700,000 shares of its 7.75% Series A Cumulative Redeemable Preferred Stock (the 'Series A Preferred Stock') at a public offering price of $25.00 per share, which will result in net proceeds to the Company of approximately $40.8 million after payment of underwriting discounts and commissions and estimated offering expenses payable by the Company. The Series A Preferred Stock has a private credit rating of 'BBB' from Egan-Jones Ratings Company, an independent unaffiliated rating agency. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 255,000 shares of Series A Preferred Stock on the same terms and conditions to cover overallotments, if any.

The offering is expected to close on June 29, 2021, subject to customary closing conditions. The Company intends to list the Series A Preferred Stock on the NYSE American under the symbol 'SACHPRA' and expects that trading will commence on or about July 6, 2021.

Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and William Blair & Company, LLC are acting as joint book-running managers for the offering. Aegis Capital Corp. is acting as co-manager for the offering.

Investors should consider the Company's investment objectives, risks, charges and expenses carefully before investing. The preliminary prospectus supplement, dated June 23, 2021, and the accompanying base prospectus, dated June 17, 2021 (collectively, the 'Prospectus'), which have been filed with the Securities and Exchange Commission ('SEC'), contain this and other information about the Company and should be read carefully before investing. The information in the Prospectus and this press release is not complete and may be changed. The Prospectus and this press release are not offers to sell these securities and are not soliciting an offer to buy these securities in any state where such offer or sale is not permitted.

A shelf registration statement relating to these securities is on file with and has been declared effective by the SEC. The offering may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained in the following ways: by writing Ladenburg Thalmann & Co. Inc. at 640 Fifth Avenue, 4th Floor, New York, New York 10019, by calling toll-free 1-800-573-2541 or by sending an e-mail to: [email protected]; by writing Janney Montgomery Scott LLC at 1717 Arch Street Philadelphia, PA 19103, by calling toll-free 1-800-526-6397 or by sending an e-mail to: [email protected]; or by writing William Blair & Company, L.L.C. at 150 North Riverside Plaza, Chicago, Illinois 60606, by calling toll-free 1-800-621-0687 or by emailing [email protected]. Copies may also be obtained for free by visiting EDGAR on the SEC's website at http://www.sec.gov.

Egan-Jones Ratings Company is a nationally recognized statistical rating organization (NRSRO) and is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP). Egan-Jones is also certified by the European Securities and Markets Authority (ESMA). A security rating is not a recommendation to buy, sell or hold securities, and any such rating may be subject to revision or withdrawal at any time by the applicable rating agency.

About Sachem Capital Corp.

Sachem Capital Corp. specializes in originating, underwriting, funding, servicing, and managing a portfolio of first mortgage loans. It offers short term (i.e., three years or less) secured, non­banking loans (sometimes referred to as 'hard money' loans) to real estate investors to fund their acquisition, renovation, development, rehabilitation or improvement of properties located primarily in Connecticut. The company does not lend to owner occupants. The company's primary underwriting criteria is a conservative loan to value ratio. The properties securing the company's loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate. Each loan is also personally guaranteed by the principal(s) of the borrower, which guaranty may be collaterally secured by a pledge of the guarantor's interest in the borrower. The company also makes opportunistic real estate purchases apart from its lending activities. The company believes that it qualifies as a real estate investment trust (REIT) for federal income tax purposes and has elected to be taxed as a REIT beginning with its 2017 tax year.

Forward Looking Statements

Thispressreleasemaycontainforward-lookingstatements.Allstatementsotherthanstatementsofhistoricalfactscontainedinthispressrelease,includingstatementsregardingourfutureresultsofoperationsandfinancialposition,strategyandplans,andourexpectationsforfutureoperations,areforward-lookingstatements.Thewords'anticipate,''estimate,''expect,''project,''plan,''seek,''intend,''believe,''may,''might,''will,''should,''could,''likely,''continue,''design,'andthenegativeofsuchtermsandotherwordsandtermsofsimilarexpressionsareintendedtoidentifyforward-looking statements.

Wehavebasedtheseforward-lookingstatementslargelyonourcurrentexpectationsandprojectionsaboutfutureeventsandtrendsthatwebelievemayaffectourfinancialcondition,resultsofoperations,strategy,short-termandlong-termbusinessoperationsandobjectivesandfinancialneeds.Theseforward-lookingstatementsaresubjectto severalrisks,uncertaintiesandassumptions as described in our Annual Report on Form 10-K for 2020 filed with the U.S. Securities and Exchange Commission on March 31, 2021. Because of theserisks,uncertaintiesandassumptions,theforward-lookingeventsandcircumstancesdiscussedinthispressreleasemaynotoccur,andactualresultscoulddiffermateriallyandadverselyfromthoseanticipatedorimpliedin theforward-looking statements.

Youshouldnotrelyuponforward-lookingstatementsaspredictionsoffutureevents.Althoughwebelievethattheexpectationsreflectedintheforward-lookingstatementsarereasonable,wecannotguaranteefutureresults, levelofactivity,performanceorachievements.Inaddition,neitherwenoranyotherpersonassumesresponsibilityfortheaccuracyandcompletenessofanyoftheseforward-lookingstatements.Wedisclaimanyduty to updateanyoftheseforward-looking statements.

Allforward-lookingstatementsattributabletousareexpresslyqualifiedintheirentiretybythesecautionarystatementsaswellasothersmadeinthispressrelease. Youshouldevaluateall forward-looking statementsmadebyusinthe contextoftheserisksand uncertainties.

Investor & Media Contact:
Crescendo Communications, LLC
Email: [email protected]
Tel: (212) 671-1021


Source: Sachem Capital Corp.

Released June 23, 2021