Creative Media (NASDAQ:CMCT) shares are trading higher Thursday after the company announced it closed the sale of its lending division.
Creative Closes $44.9 Million Sale of Lending Division
The company said it sold the lending division to PG FR Holding, LLC, an affiliate of Atlanta-based Peachtree Group, for a purchase price of approximately $44.9 million, net of outstanding debt tied to a 2023 securitization of certain loan receivables. After accounting for debt repayment, transaction expenses, and other adjustments, Creative said the transaction generated net cash proceeds of about $31.2 million.
Creative said the sale supports its priorities of strengthening its balance sheet and improving liquidity while continuing to grow its multifamily portfolio.
CMCT Price Action: At the time of writing, Creative shares are trading 50.85% higher at $4.44, according to data from Benzinga Pro.
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