Written by 5:01 pm Blog

ARC Global Trust II: Merger Leads to Loss for Investors

ARC Global Trust II Investment Losses

Have you suffered losses investing in ARC Global Trust II? If so, The White Law Group may be able to help.

According to reports, American Realty Capital Global Trust II, Inc. recently announced that its Board of Directors unanimously approved a definitive agreement to merge with Global Net Lease, Inc. (“GNL”) to create a premier, global, single-tenant net lease REIT with a pro forma enterprise value of $3.3 billion.  Under the terms of the agreement announced Monday morning, ARC Global II shareholders will receive 2.27 shares of Global Net Lease for each of their shares.

Investors originally paid $25 per share for ARC Global Trust II, which had its initial public offering from August 2014 to last November. That’s when the wholesaling broker-dealer, Realty Capital Securities, was charged with proxy fraud by the Massachusetts Securities Division and AR Global products ceased to be sold, according to reports.

Based on the announcement, it appears that ARC Global Trust II investors will receive$19.59 per share for the ARC Global Trust II shares, based on Global Net Lease’s closing price as of Aug. 5. That’s 21.7% less than the $25 a share price investors paid for ARC Global II shares during the IPO.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that some investors purchase high-risk alternative investments like ARC Global Trust II. Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives.

Recovery of Investment Losses

If you suffered losses investing in ARC Global Trust II and would like a free consultation with a securities attorney, please call The White Law Group at (888)637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , Last modified: April 5, 2017