Creative Media & Community Trust Shares Soar 66% On Sale Of Lending Division

(RTTNews) - Creative Media & Community Trust Corporation (CMCT) surged 66.13% to $7.97, up $3.17, after announcing a definitive agreement to sell its lending division to PG FR Holding, LLC, an affiliate of the Atlanta-based Peachtree Group, for approximately $44 million, net of debt.

CMCT expects to receive approximately $31 million in net cash proceeds after paying related debt and transaction expenses. The sale aligns with CMCT's strategic priorities to grow its multifamily and creative office portfolio, strengthen its balance sheet, and enhance liquidity.

As part of the deal, Executive Vice President & CFO Barry Berlin will resign, and Brandon Hill will assume the roles of Chief Financial Officer and Treasurer.

On the day of the announcement, CMCT experienced unusually heavy trading volume as investors reacted to the news. The stock's 52-week range is $2.65 - $7.97.