Creative Media & Community Trust Corp Issues Common Stock for Preferred Redemptions

What Happened

• Creative Media & Community Trust Corporation (CMCT) filed an 8-K (Item 3.02) reporting that on September 9, 2026 it issued a total of 30,555 shares of Common Stock in lieu of cash to satisfy redemptions of preferred stock. The Company issued 7,477 shares for redemptions of Series A1 Preferred Stock and 23,078 shares for redemptions of Series A Preferred Stock.
• The conversion price used for these share issuances was based on the 20‑trading‑day VWAP immediately preceding the redemption date and amounted to approximately $4.35 per common share.

Key Details

• Shares issued on Sept 9, 2026: 7,477 (Series A1) + 23,078 (Series A) = 30,555 common shares.
• Conversion price: ~ $4.35 per common share (20‑day VWAP prior to Sept 9, 2026).
• Outstanding redemption requests as of Sept 10, 2026: ~12,217 shares of Series A1 and ~9,906 shares of Series A may be redeemed later in cash or common stock at the Company’s election.
• If CMCT elects to redeem additional preferreds in common stock, issuances will occur after the Company opens its next trading window per its Insider Trading Policy.

Why It Matters

• These redemptions reduce the Company’s preferred share obligations and dividend accruals but increase the number of common shares outstanding, which can dilute existing common shareholders.
• Investors should note the conversion method (20‑day VWAP) and the approximate price ($4.35), as additional similar redemptions (if paid in stock) could further affect share count and per‑share metrics.
• The filing reports unregistered sales of securities (Item 3.02), signaling the Company used an exemption to issue common shares rather than registering the issuance with the SEC.