Resource Apartment REIT III
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 26, 2021
RESOURCE APARTMENT REIT III, INC.
(Revolution III Merger Sub, LLC, as successor by merger to Resource Apartment REIT III, Inc.)
(Exact name of registrant specified in its charter)
(State or other jurisdiction of
incorporation or organization)
c/o Resource REIT, Inc.
1845 Walnut Street, 17th Floor
Philadelphia, Pennsylvania 19103
(Address of principal executive offices)
Registrant’s telephone number, including area code: (215) 231-7050
(Former name or former address, if changed since last report)
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Name of each exchange
on which registered
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Completion of Acquisition or Disposition of Assets.
Completion of Merger
As previously disclosed in the Current Report on Form 8-K of Resource Apartment REIT III, Inc. (the “Company”) filed with the Securities and Exchange Commission (“SEC”) on September 11, 2020 (the “Prior 8-K”), the Company, Resource REIT, Inc. (f/k/a Resource Real Estate Opportunity REIT II, Inc.) (“Resource REIT”), RRE Opportunity OP II, LP (“OP II”), Resource Apartment OP III, LP (“OP III”) and Revolution III Merger Sub, LLC, a direct wholly owned subsidiary of Resource REIT (“Merger Sub”), entered into an Agreement and Plan of Merger on September 8, 2020 (the “Merger Agreement”).
As described under Item 5.07 below, on January 26, 2021, the Company’s stockholders approved the Merger (as defined herein) contemplated by the Merger Agreement at the Special Meeting (as defined below).
On January 28, 2021, the Company merged with and into Merger Sub, with Merger Sub surviving as a direct wholly owned subsidiary of Resource REIT (the “Company Merger”) and (ii) OP III merged with and into OP II, with OP II surviving (the “Partnership Merger” and, together with the Company Merger, the “Merger”). At such time, in accordance with the applicable provisions of the Maryland General Corporation Law, the Maryland Limited Liability Company Act and the Delaware Revised Uniform Limited Partnership Act, the separate existence of the Company and OP III ceased.
At the effective time of the Company Merger, each issued and outstanding share of the Company’s common stock (or a fraction thereof), $0.01 par value per share (“REIT III Common Stock”), converted into 0.925862 shares of Resource REIT’s common stock, $0.01 par value per share (“Resource REIT Common Stock”).
At the effective time of the Partnership Merger, each unit of partnership interests in OP III outstanding immediately prior to the effective time of the Partnership Merger was retired and ceased to exist. In addition, for each share of Resource REIT Common Stock issued in the Company Merger, a common partnership unit was issued by OP II to REIT II.
The combined company after the Merger will be known as “Resource REIT, Inc.” The Merger is 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 foregoing description of the Merger Agreement contained in this Item 2.01 does not purport to be complete and is subject to and qualified in its entirety by reference to the Merger Agreement, a copy of which is filed as Exhibit 2.1 to this Current Report on Form 8-K and incorporated herein by reference.
Material Modification to Rights of Security Holders.
As a result of and at the effective time of the Merger, holders of REIT III Common Stock immediately prior to such time ceased having any rights as stockholders of the Company (other than their right to receive 0.925862 shares of Resource REIT Common Stock per share under the Merger Agreement).
The information set forth in Item 2.01 is incorporated herein by reference.
Changes in Control of Registrant.
As a result of and at the effective time of the Merger, a change in control of the Company occurred and the Company merged with and into Merger Sub and the separate corporate existence of the Company ceased.
The information set forth in Item 2.01 is incorporated herein by reference.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
As a result of the Merger and pursuant to the Merger Agreement, as described in Item 2.01 of this Current Report on Form 8-K, the Company ceased to exist and Merger Sub continued as the surviving corporation. All members of the board of directors of the Company ceased to be directors at the effective time of the Merger by operation of the Merger. The departure of the directors was in connection with the Merger and was not due to any disagreement or dispute with the Company on any matter.
Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
On January 26, 2021, at the Special Meeting (as defined below), the Company’s stockholders approved Articles of Amendment to the charter of the Company (the “Articles of Amendment”) to remove certain provisions related to “Roll-Up Transactions” (and the associated definitions) from the Company’s charter. For a further description of the Articles of Amendment, please refer to the definitive proxy statement/prospectus filed by the Company with the SEC on November 4, 2020.
On January 27, 2021, the Company filed the Articles of Amendment with the State Department of Assessments and Taxation of Maryland, and the Articles of Amendment became effective upon filing. A copy of the Articles of Amendment is included as Exhibit 3.1 hereto and is incorporated herein by reference.
Submission of Matters to a Vote of Security Holders.
On January 26, 2021, the Company held a special meeting of its stockholders (the “Special Meeting”), at which its stockholders were asked to consider and vote on (i) a proposal to approve the Merger (the “Merger Proposal”), (ii) a proposal to approve the amendment of the charter of the Company to remove the provisions related to “Roll-Up Transactions” in connection with the Merger (the “Charter Amendment Proposal”), and (iii) a proposal to adjourn the Special Meeting to solicit additional proxies in favor of the Merger Proposal and/or the Charter Amendment Proposal if there are not sufficient votes to approve the Merger Proposal and/or the Charter Amendment Proposal, if necessary and as determined by the chair of the Special Meeting (the “Adjournment Proposal”).
The Company previously filed with the SEC a definitive proxy statement/prospectus and related materials pertaining to the Special Meeting, which describe in detail each of the proposals submitted to the Company’s stockholders to be voted on at the Special Meeting.
At the Special Meeting, there were present, in person or by proxy, stockholders holding an aggregate of approximately 7,271,756 shares of the Company’s common stock, representing approximately 59.85% of the total number of 12,148,810 shares of the Company’s common stock issued and outstanding as of October 27, 2020, the record date for the Special Meeting, and entitled to vote at the Special Meeting.
The final results of the following matters voted on at the Special Meeting are set forth below.
Charter Amendment Proposal
Accordingly, the Company’s stockholders approved the Merger Proposal, the Charter Amendment Proposal and the Adjournment Proposal.
Regulation FD Disclosure.
On January 29, 2021, Resource REIT issued a press release announcing the closing of the Merger. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein solely for purposes of this Item 7.01 disclosure.
Pursuant to the rules and regulations of the SEC, the information in this Item 7.01 disclosure, including Exhibit 99.1 and information set forth therein, is deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Financial Statements and Exhibits.
Pursuant to the requirements of the Securities Exchange Act of 1934, Merger Sub, as successor in interest by merger to the Company, has caused this report to be signed on its behalf by the undersigned duly authorized person.
|REVOLUTION III MERGER SUB, LLC (as successor by merger to Resource Apartment REIT III, Inc.)|
|By: RESOURCE REIT, INC. (f/k/a Resource Real Estate Opportunity REIT II, Inc.), a Maryland corporation, its sole member|
|Dated: January 29, 2021|
/s/ Alan F. Feldman
|Name:||Alan F. Feldman|
|Title:||Chief Executive Officer and President|