Company: CMCT
Filing Date: 2025-06-13
Form Type: PRE 14A
Source: 0000908311-25-000044
Chunk: 24

Company: Creative Media & Community Trust Corp
Filing Date: 2025-06-13
Form: PRE 14A
Chunk 24
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 Preferred Stock and Series A1 Preferred Stock and pay the redemption price in shares of Common Stock. Holders of the Preferred Stock have the right, at each such holder’s option, to require the Company to redeem any or all of such holder’s shares of Preferred Stock at a redemption price of $25.00 per share, plus an amount equal to all accrued but unpaid dividends, if any, to and including the redemption date, subject to the terms of such Preferred Stock set forth in the Charter. This holder redemption price may be paid in cash or in shares of Common Stock (based on the VWAP of the Common Stock for the 20 trading days immediately preceding the applicable redemption date, with each such term as defined in the Charter), at the Company’s option. “VWAP” means, for any trading day, the volume-weighted average price, calculated by dividing the aggregate value of Common Stock traded on Nasdaq during regular hours (price per share multiplied by number of shares traded) by the total volume (number of shares) of Common Stock traded on Nasdaq (or such other national securities exchange or automated quotation system on which the Common Stock is listed) for such trading day, or if such volume-weighted average price is unavailable, the market value of one share of Common Stock on such trading day as determined by the Board in a commercially reasonable manner, using a volume-weighted average price method. Recently, the Company has chosen to pay such redemptions in shares of Common Stock in order to increase its common equity as a percentage of assets and improve its liquidity.

In addition, the Company has in the past exercised its right to redeem shares of Preferred Stock at its option (subject to

the terms of the Preferred Stock set forth in the Charter) and pay the redemption price in shares of Common Stock, and the

Company may do so again in the future.

We believe that the significant volume of Common Stock issued to meet redemption requests and in connection with

redemptions at the Company’s option has placed significant downward pressure on the bid price of our Common Stock. If our

Common Stock price declines, more shares of Common Stock are issuable under the 20-day VWAP formula, which in turn may

place further downward pressure on the bid price of our Common Stock.

The proposed 1:4 Reverse Stock Split is intended to adjust the bid price of the Common Stock upward in an effort

to maintain compliance with Nasdaq’s Minimum Bid Price Rule. Our Board believes that that the 1:4 Reverse Stock Split