Stockholders' Equity |
6 Months Ended | |
|---|---|---|
Jun. 30, 2017 | ||
| Stockholders' Equity Note [Abstract] | ||
| Stockholders' Equity Note Disclosure [Text Block] |
Note 5 Stockholders’ Equity Preferred Stock
The Company’s charter authorizes the issuance of 10,000,000 shares of preferred stock, par value $0.001 per share. As of June 30, 2017 and December 31, 2016, no shares of preferred stock were issued and outstanding.
Common Stock The Company has 500,000,000 of authorized shares of common stock, $0.001 par value. As of June 30, 2017 and December 31, 2016, there were 21,105,675 and 17,605,675 outstanding shares of common stock. On June 30, 2017, the Company closed a public underwritten offering of 3,500,000 shares of its common stock at a public offering price of $9.00 per share, resulting in gross proceeds of $31,500,000. After deducting underwriting discounts, advisory fees, and costs paid by the Company that were directly attributable to the offering, the Company received net proceeds from the offering of $29,553,232. The Company granted the underwriters an option to purchase a maximum of 525,000 additional shares of common stock from the Company at the public offering price, less underwriting discounts, which the underwriters exercised in full on July 18, 2017 and which closed on July 20, 2017. See Note 11 “Subsequent Events.” The Company contributed the net proceeds of the offering to its Operating Partnership in exchange for OP Units. The Operating Partnership used the net proceeds from the offering to repay $25,000,000 of its outstanding indebtedness under its revolving credit faculty and to fund acquisitions or for other general corporate purposes. The Operating Partnership invested the unexpended net proceeds of the follow-on offering in an interest-bearing account, which is consistent with its intention to qualify for taxation as a REIT. On January 10, 2017 the Company paid the fourth quarter 2016 dividend that was announced on December 14, 2016 in the amount of $3,604,037. On March 20, 2017, the Company announced the declaration of a cash dividend of $0.20 per share of common stock to stockholders of record as of March 27, 2017 and to the holders of the LTIP units that were granted on July 1, 2016 and December 21, 2016. This dividend, in the amount of $3,603,484, was paid on April 10, 2017. On June 16, 2017, the Company announced the declaration of a cash dividend of $0.20 per share of common stock to stockholders of record as of June 27, 2017 and to the holders of the LTIP units that were granted on July 1, 2016, December 21, 2016 and May 8, 2017. This dividend, in the amount of $3,604,531, was accrued as of June 30, 2017 and paid on July 10, 2017. In accordance with the above, during the six months ended June 30, 2017, the Company paid total dividends to holders of its common stock in the amount of $7,207,521. During the six months ended June 30, 2016, the Company paid total dividends to holders of its common stock in the amount of $285,703. In accordance with the terms of the Company’s 2017 Annual Equity Bonus and Long-Term Equity Award Plan as disclosed in Note 7 “Stock-Based Compensation,” as of June 30, 2017 the Company accrued a dividend of $0.20 per LTIP unit for each of the first and second quarters of 2017 on the aggregate annual and long-term LTIP units that are subject to retroactive receipt of dividends on the amount of LTIPs ultimately earned. The aggregate amount of the accrual as of June 30, 2017 was $96,405. On March 2, 2016, ZH USA, LLC converted $15,000,000 of principal under its convertible debenture with the Company (the “Convertible Debenture”) into 1,176,656 shares of the Company’s unregistered common stock. The shares of unregistered common stock issuable to ZH USA, LLC under the Convertible Debenture are subject to customary anti-dilution rights in the event of stock splits, stock dividends and similar corporate events. |