8-K: Cherry Hill Mortgage Investment Corp Expands At-the-Market Offering Program

Cherry Hill Mortgage Investment Corporation has increased its at-the-market offering program to $150 million and added BTIG, LLC as a sales agent.

Summary

• Cherry Hill Mortgage Investment Corporation has entered into agreements to expand its at-the-market (ATM) offering program.
• The company has increased the aggregate offering price of common stock that may be issued and sold through the ATM program from $100 million to $150 million.
• Approximately $95.2 million of shares had already been sold under the previous limit.
• BTIG, LLC has been added as a new sales agent to the program.
• Amendments were made to existing sales agreements with Citizens JMP Securities, LLC and B. Riley Securities, Inc. to reflect the increased offering size and new agent.
• The shares will be offered and sold through the sales agents in transactions deemed to be at-the-market offerings.

Sentiment

Score: 7

Explanation: The announcement is generally positive as it provides the company with more financial flexibility. However, there is a risk of dilution for existing shareholders.

Positives

• The company has increased its financial flexibility by expanding its ATM offering program.
• The addition of a new sales agent may improve the efficiency of the offering.

Risks

• The company may experience dilution of existing shares due to the increased offering.
• There is no guarantee that the company will be able to sell all of the shares at the desired price.

Future Outlook

The company intends to continue selling shares through the ATM program, subject to market conditions and other factors.

Industry Context

At-the-market offerings are a common way for companies to raise capital, particularly in the real estate investment trust (REIT) sector. This allows companies to sell shares gradually into the market, reducing the risk of a significant price drop.

Comparison to Industry Standards

• Many REITs use ATM programs to raise capital, including companies like Annaly Capital Management (NLY) and AGNC Investment Corp. (AGNC).
• The size of the offering is within the typical range for companies of similar size and market capitalization.
• The use of multiple sales agents is also a common practice to ensure efficient execution of the offering.

Stakeholder Impact

• Shareholders may experience dilution due to the increased number of shares being issued.
• The company will have more capital available for investments and operations.
• The company's financial position may be strengthened.

Next Steps

• The company will continue to sell shares through the ATM program.
• The company will file a prospectus supplement with the SEC related to the new shelf registration.

Key Dates

Keywords

at-the-market offering, common stock, capital raise, sales agreement, BTIG, Citizens JMP Securities, B. Riley Securities, equity offering