Item 1.02 Termination of a Material Definitive Agreement
On May 7, 2021, City Office REIT, Inc. (the "Company") delivered to D.A.
Davidson & Co. ("D.A. Davidson") notice of termination of the Equity
Distribution Agreement dated February 26, 2020, by and among the Company and
D.A. Davidson (the "D.A. Davidson Distribution Agreement"), which termination
will become effective May 7, 2021.
Pursuant to the D.A. Davidson Distribution Agreement, among other things, the
Company, from time to time, could offer and sell up to 15,000,000 shares of the
Company's common stock and up to 1,000,000 shares of the Company's 6.625% Series
A Cumulative Redeemable Preferred Stock in transactions that are deemed to be
"at-the-market" offerings as defined in Rule 415 under the Securities Act of
1933, as amended, with D.A. Davidson acting as the Company's agent. Under the
D.A. Davidson Distribution Agreement, D.A. Davidson was entitled to compensation
of 2.0% of the gross proceeds from the sales of the shares sold through it
pursuant to the terms of the D.A. Davidson Distribution Agreement. As of May 7,
2021, the Company did not sell any shares of common stock pursuant to the D.A.
Davidson Distribution Agreement.
The Company has decided to terminate the D.A. Davidson Distribution Agreement
because it does not intend to utilize this agreement to raise additional
capital. The Company will not incur any termination penalties as a result of
such termination.
Item 8.01 Other Events.
On April 1, 2021, the Company filed with the U.S. Securities and Exchange
Commission (the "SEC") a universal shelf Registration Statement on Form S-3
(File No. 333-254966) (the "New Registration Statement"). The New Registration
Statement was declared effective by the SEC on April 12, 2021. In connection
with the New Registration Statement, on May 7, 2021, the Company filed a
prospectus supplement with the SEC pursuant to which the Company may offer and
sell from time to time up to 15,000,000 shares of the Company's common stock,
par value $0.01 per share (the "common stock"), and up to 1,000,000 shares of
the Company's 6.625% Series A Cumulative Redeemable Preferred Stock, par value
$0.01 per share (the "Series A Preferred Stock" and together with the common
stock, the "Shares"). Sales of Shares, if any, may be made in privately
negotiated transactions and/or sales deemed to be an "at the market" offering as
defined in Rule 415 of Securities Act of 1933, as amended, including, without
limitation, sales made directly on the New York Stock Exchange or sales made to
or through a market maker other than on an exchange. The equity distribution
agreements pursuant to which the Shares may be sold were filed as exhibits to
the Company's Current Report on Form 8-K filed with the SEC on February 26,
2020.
The Company is filing this Current Report on Form 8-K to provide the legal
opinion of Ballard Spahr LLP regarding the legality of the Shares, which opinion
is attached hereto as Exhibit 5.1.
Item 9.01 Financial Statements and Exhibits.
Exhibit
Number Description
5.1 Opinion of Ballard Spahr LLP
23.1 Consent of Ballard Spahr LLP (included in Exhibit 5.1)
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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