Great Elm Group, Inc. (NASDAQ: GEG) disclosed that it has dumped its entire ownership interest in two Class A office buildings situated in Fort Myers, Florida to an associate of Monomoy Properties, LLC. Monomoy is a privately-held industrial properties focused REIT managed by Imperial Capital Asset Management, LLC. GEG has sold stake in a cash payment of $4.6 million.
It has been revealed by the firm that in accordance with the terms of the transaction, GEG spent the profit of the sale into newly issued membership interests of Monomoy. GEG bought the Real Estate Business in March 2018 for $2.7 million. Great Elm revealed that additional details and information about the transaction, involving pro forma financial information, will be available in a current report on Form 8-K submitted by GEG with SEC.
Shares of Great Elm (NASDAQ: GEG) surged +4.80% as it gained +0.1100 during the trading session of Thursday. The firm has recorded the trading volume of 6.92K as compared to the average volume of 72.75K. Great Elm has reported the total market capitalization of $62.22 million at the time of writing.
Furthermore, this selling is a landmark step of GEG. This deal will enhance its overall capitalization as the debt linked with the Real Estate Business will no longer be incorporated into the GEG’s financial statements, which resulted in the merged operating and leverage ratios that are more contemplative of its current operating businesses.