Medalist Diversified REIT, Inc. 8-K

What Happened

• Medalist Diversified REIT, Inc. (MDRR) filed an 8-K on December 30, 2025 disclosing two material actions. On December 29, 2025, a wholly‑owned subsidiary (MDR Parkway, LLC) and a co‑seller entered a Purchase and Sale Agreement to sell the property at 2697 International Parkway, Virginia Beach, VA (the "Parkway Property") for $7,900,000. The purchaser must deposit $100,000 earnest money within three business days; the sale is expected to close within 90 days but remains subject to customary conditions.
• On December 30, 2025, the company repaid in full and terminated its Loan Agreement (originally dated July 18, 2025) and related guaranties with Farmers and Merchants Bank of Long Beach, which provided a line of credit up to $14,700,000. Repayment used cash on hand and proceeds from prior property dispositions; no material early termination penalties were incurred.

Key Details

• Sale price for Parkway Property: $7,900,000.
• Earnest money deposit required: $100,000 (within three business days of the Dec 29, 2025 agreement).
• Expected sale closing: within 90 days of the Dec 29, 2025 agreement; closing is subject to customary conditions and adjustments.
• Loan facility repaid/terminated: Loan Agreement (max $14.7M line), plus Company and Operating Partnership guaranties — repayment completed Dec 30, 2025; obligations released except for customary survival provisions.

Why It Matters

• The announced sale, if completed, would generate cash proceeds tied to the $7.9M purchase price and could further affect the company’s liquidity position.
• The full repayment and termination of the $14.7M credit facility reduces outstanding debt and removes that borrowing arrangement and related guaranties from the company’s balance sheet; the filing notes no material prepayment penalties were incurred.
• Investors should note the Parkway sale is not final until closing and remains subject to conditions; the Purchase and Sale Agreement is filed as Exhibit 10.1 for reference.