Did you lose money investing in Hartman Short Term Income Properties XIX?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in Hartman Short Term Income Properties XIX at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the broker-dealer and/or registered representative that recommended the investment.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Merger with Hartman Short Term Income Properties XX and Hartman Income REIT
On July 21, 2017, Hartman Short Term Income Properties XX (“Hartman XX”) and Hartman Short Term Income Properties XIX entered into an agreement and plan of merger under which Hartman Short Term Income Properties XIX will merge with and into Hartman XX, with Hartman XX surviving the merger.
Under the agreement,
- each share of common stock of Hartman Short Term Income Properties XIX (the “XIX Common Stock”) issued and outstanding immediately prior to the Effective Time (as defined in the agreement) will be automatically cancelled and retired and converted into the right to receive 9,171.98 shares of common stock, $0.01 par value per share, of Hartman XX (“XX Common Stock”),
- each share of 8% cumulative preferred stock of Hartman Short Term Income Properties XIX issued and outstanding immediately prior to the Effective Time will be automatically cancelled and retired and converted into the right to receive 1.238477 shares of XX Common Stock, and
- each share of 9% cumulative preferred stock of Hartman Short Term Income Properties XIX issued and outstanding immediately prior to the Effective Time will be automatically cancelled and retired and converted into the right to receive 1.238477 shares of XX Common Stock.
On July 21, 2017, as subsequently modified on May 8 2018, Hartman XX entered into an agreement and plan of merger with Hartman Income REIT (“HIREIT”) under which HIREIT will merge with and into Hartman XX, with HIREIT surviving the merger.
Under that agreement,
- each share of common stock of HIREIT issued and outstanding immediately prior to the Effective Time (as defined in the agreement) will be automatically cancelled and retired and converted into the right to receive 0.752222 shares of XX Common Stock, and
- each share of subordinate common stock of HIREIT will be automatically cancelled and retired and converted into the right to receive 0.863235 shares of XX Common Stock.
The REIT Mergers are intended to qualify as a “reorganization” under, and within the meaning of, Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”).
What are Real Estate Investment Trusts (REIT)?
A Real Estate Investment Trust (“REIT”) is a complex investment that is generally only suitable for sophisticated high-net worth investors, and then only in certain circumstances. A REIT is an entity that owns, and may also manage, income producing real estate. REITs pool capital from multiple investors and use it to purchase properties, similar to mutual funds and other pooled investment vehicles.
A Real Estate Investment Trust can be offered in several different forms. A Public Exchange Listed REIT is registered with the U.S. Securities and Exchange Commission (“SEC”) and is publicly traded on a national securities exchange. A Public Non-Listed REIT is registered with the SEC, but does not trade on a major securities exchange. Finally, a Private REIT, also known as a private-placement REIT, is not registered with the SEC and does not trade on a national securities exchange.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Hartman Short Term Income Properties XIX Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as Hartman Short Term Income Properties XIX, and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Hartman Short Term Income Properties XIX, or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Hartman Short Term Income Properties XIX and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.