American Spectrum Realty (AQQ) in Talks for Capital Raise

May 22, 2012 9:03 AM EDT
American Spectrum Realty, Inc. (AMEX: AQQ) is in discussion with several parties to sell or spin-off to one or more joint venture partners its property management and tenant-in-common (TIC) businesses in order to raise capital and to invest in the TIC business for The Company.

The Company is also in discussions with an investment firm to raise new capital for The Company through a senior common stock offering. The Company is also in direct discussions with several real estate operators concerning a direct investment in The Company.

These transactions may require The Company to elect to be treated as a real estate investment trust (REIT) if it meets the relevant qualifications. There are no binding agreements or commitments with respect to any of these transactions or their terms, and there is no assurance that they will be consummated.

These transactions will allow American Spectrum Realty to implement its long term strategic plan of selling certain assets to reduce our liabilities, increase our liquidity, and redirect capital to our core business. These transactions will generate sufficient cash to pay down debt and reinvest the remaining capital. The Company makes no assurances that these transactions will be concluded.

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