NEW YORK--(BUSINESS WIRE)--Great Ajax Corp. (NYSE: AJX) announced today that the Company has entered into a securities purchase agreement pursuant to which it has agreed to issue and sell $80 million of the Company’s preferred stock and warrants to affiliates of an institutional accredited investor in a private placement. The Company will issue 1,200,000 shares of the Company’s 7.25% Series A Fixed-to-Floating Rate Preferred Stock, liquidation preference $25.00 per share, and 2,000,000 shares of the Company’s 5.00% Series B Fixed-to-Floating Rate Preferred Stock, liquidation preference $25.00 per share, each at a purchase price per share of $25.00 and two series of five-year warrants to purchase an aggregate of 4,000,000 shares of the Company’s common stock at an exercise price of $10.00 per share. Each series of warrants includes a put option that will allow the holder to sell the warrants to the Company at a specified put price on or after July 6, 2023. In addition, the Company has granted the investor an option to purchase up to an additional 300,000 shares of the Company’s Series A Preferred Stock, 500,000 shares of the Company’s Series B Preferred Stock and warrants to purchase an aggregate of 1,000,000 shares of the Company’s common stock on the same terms. The Company expects to use the net proceeds from the private placement to acquire mortgage loans and mortgage-related assets consistent with the Company’s investment strategy.
About Great Ajax
Great Ajax Corp. is a Maryland corporation that is a real estate investment trust, that focuses primarily on acquiring, investing in and managing re-performing mortgage loans secured by single-family residences and, to a lesser extent, non-performing mortgage loans. The Company also originates loans secured by multi-family residential and smaller commercial mixed use retail/residential properties, and invests in multi-family residential and smaller commercial mixed use retail/residential properties directly. The Company is externally managed by Thetis Asset Management LLC. Its mortgage loans and other real estate assets are serviced by Gregory Funding LLC, an affiliated entity. The Company has elected to be taxed as a real estate investment trust under the Internal Revenue Code.
