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DENVER-AmeriVest Properties Inc. plans to hold its 2006 annual meeting on May 24, according to a recent Securities and Exchange Commission filing obtained by GlobeSt.com. The main purpose of the meeting, to be held in a law office, is to "consider and vote upon the plan of liquidation and dissolution of our company," states the document.
GlobeSt.com earlier reported that AmeriVest, a pioneer real estate investment trust that catered exclusively to small- and medium-sized tenants, planned to liquidate. The company lacked the critical mass needed to compete and didn't have the resources to buy more buildings in today's low-cap environment. Also, many large REITs, which in the past had focused in large companies increasingly began catering to a smaller tenant. Even the Sarbanes-Oxley reporting requirements had proved to be costly for the company.
"Under the plan of liquidation, we intend to effectuate the orderly sale of each of our company's remaining assets, which may take place in connection with the dissolution of substantially all of our company's subsidiaries, the collection of all outstanding loans and receivables, the discharge of all outstanding liabilities to third parties, and, after the provision of appropriate reserves, the distribution of all remaining cash to our stockholders and the dissolution of our company," AmeriVest execs say in the SEC filing.
According to the filing, if the plan of liquidation is approved, the company's board of directors may determine to sell AmeriVest's remaining assets in a single transaction, a series of related transactions or several distinct transactions.
Company execs anticipate that stockholders will receive aggregate cash distributions of between $4.20 and $4.80 per share of common stock. "The amount and timing of distributions will depend on when each of our properties is sold," the document states. "As properties are sold and cash proceeds are accumulated, our board of directors will determine the amount and timing of the initial distribution to stockholders."
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