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Written by 10:29 am Blog, Current Investigations

Investor Alert: Mobile Infrastructure Corp. Plans IPO under Ticker “BEEP”

Investor Alert: Parking REIT changes name to Mobile Infrastructure Corp. , featured by top securities fraud attorneys, the White Law Group

The Parking REIT Changes Name to Mobile Infrastructure Corp., announces Merger Plans and IPO   

On November 12, 2021, The Parking REIT announced in a letter to investors that it has changed its name to Mobile Infrastructure Corporation, after losing its status as a REIT. The company, which invests primarily in parking lots and garages in the United States, reportedly lost REIT status during the pandemic when leases were converted to management agreements by the prior management team. The company noted that it is attempting to reassert REIT status.
 

(Please see: The Parking REIT: Negative Effects of Covid-19 Pandemic)    

The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended the Parking REIT (now known as Mobile Infrastructure Corp.) to investors.   

On May 31, 2022, the company announced it had reached a merger agreement with Mobile Infrastructure Trust (MIT), a newly formed entity that is planning an initial public offering (IPO) and subsequent listing of its shares on the NYSE under the ticker symbol “BEEP”. The merger will depend on certain customary closing conditions, including shareholder approval and MIT’s initial public offering. The company anticipated the merger will close in the third quarter of 2022.
 

According to a filing with the SEC on September 27, 2022, Mobile Infrastructure Corp and Mobile Infrastructure Trust entered into an amended and restated merger agreement which, among other things, amends the consideration payable to the holders of the Company’s Series A Convertible Redeemable Preferred Stock, par value $0.0001 per share (and Series 1 Convertible Redeemable Preferred Stock, par value $0.0001 per share, and together with the MIC Series A Preferred Stock.
 

The amended merger agreement also reportedly extends the termination date of the Merger Agreement from March 31, 2023 to June 30, 2023. 

Company Sells Majority Stake after Lawsuits

Amidst a myriad of problems for the Parking REIT including 3 pending class action lawsuits, and allegations of fraud against one of the company’s executives, the company agreed in January to sell a majority stake to an affiliate of Bombe Asset Management LLC, a Cincinnati-based alternative asset management firm, according to an 8-K filing.   

Color Up, LLC offered to tender up to 900,506 of the outstanding shares of common stock of The Parking REIT, Inc. at a price per share of $11.75 per share on October 5, 2021.  The other transactions contemplated by the Purchase Agreement closed on August 25, 2021 and included Color Up’s acquisition of 22.4% of the Company’s shares.   

The company notes it has plans to take the $20 million equity capital investment to purchase two parking garages in Miami, FL and Denver, CO.  At this time the company has no plans to pay a dividend to shareholders, according to the letter.  

Disappointing Net Asset Value (NAV)  

Mobile Infrastructure Corp. finally updated its net asset value (NAV) on January 14, 2021 to $11.75 per common share as of January 8, 2021, after reported delays due to the Covid-19 global pandemic. The last reported NAV as of May 15, 2019 was $25.10 per share, indicating significant losses for investors.  Shares were originally sold for $25.00 each.

May 12, 2022 – Secondary Sales Price $5.00 per share

According to Central Trade and Transfer, a secondary market for non-traded REITs, shares of Mobile Infrastructure Corp. are currently listed to sell for just $5.00 per share, indicating big losses for investors.

Parking REIT Exec Charged with Fraud   

As we previously reported, the Securities and Exchange Commission on July 30, charged an executive of the Parking REIT, and his wholly owned investment advisory firm, Vestin Mortgage LLC with fraud.    

(Please see: Parking REIT Executive Allegedly Charged with Defrauding Investors)  

 The executive allegedly funneled $29 million from Vestin Realty Mortgage I and Vestin Realty Mortgage II into The Parking REIT and then purportedly initiated “money-losing transactions in which the same six buildings were repeatedly re-sold”, all to allegedly benefit himself and The Parking REIT, according to the complaint. 

Potential Lawsuits to Recover Financial Losses   

Unfortunately, many investors are not fully aware of the problems and risks associated with alternative investments before purchasing them.   

Alternative investments are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.   

Alternative investments often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.   

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.   

Free Consultation with a National Securities Attorney   

The White Law Group is currently representing Mobile Infrastructure Corp. investors in claims against their brokerage firm. If you are concerned about your investment in the Parking REIT (now known as Mobile Infrastructure Corporation), the White Law Group may be able to help you.  For a free consultation with a securities attorney, please call 888-637-5510.   

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.   

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.   

 To learn more about the firm’s investigation, please see:  

Parking REIT Update – Declining NAV $11.75 Per Share  

 Mobile Infrastructure Corp./Parking REIT Lawsuit Investigation

  

 

 

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