BRANFORD, Conn.--(BUSINESS WIRE)--Sachem Capital Corp. (NYSE American:SACH), a real estate finance company specializing in originating, underwriting, funding, servicing and managing a portfolio of short-term, “hard money” real estate loans, today announced the pricing of a public offering of 3,750,000 common shares at a price to the public of $4.00 per share. The gross proceeds to the Company from the public offering are expected to be $15,000,000 before underwriting discounts and commissions and other expenses of the offering. The Company has granted the representatives of the underwriters a 45-day option to purchase up to an additional 562,500 common shares from the Company to cover over-allotments, if any. The Company intends to use the net proceeds of the offering primarily to expand its loan portfolio and for working capital and general corporate purposes.
The offering is expected to close on October 27, 2017, subject to customary closing conditions.
FBR Capital Markets & Co. and Joseph Gunnar & Co., LLC are acting as joint book-running managers for the offering. The Benchmark Company LLC is acting as co-manager for the offering.
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 and may also be secured with additional real estate collateral. 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 intends to make the election to be taxed as a REIT when it files its 2017 federal income tax return.
