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Shelf Registration Statement and ATM Equity Offering
 3 Months Ended
Mar. 31, 2013
Shelf Registration Statement and ATM Equity Offering [Abstract]  
Shelf Registration Statement and ATM Equity Offering

4. Shelf Registration Statement and ATM Equity Offering

 

On May 11, 2012 the Securities and Exchange Commission (SEC) declared effective Power REIT's $100 million shelf registration statement on Form S-3. Under the registration statement, the Trust may from time to time issue any combination of common or preferred equity or equity linked securities (warrants, options or units) in any amounts up to an aggregate of $100 million.

 

On March 28, 2013, the Trust entered into an At Market Issuance Sales Agreement (“ATM Agreement”) with MLV & Co. LLC, as its agent, and filed a prospectus supplement to its shelf registration statement, pursuant to which the Trust may offer and sell, from time to time, up to $5.4 million of common shares.  The Trust expects to offer and sell common shares under the "at-the-market" offering from time to time. The net proceeds of offerings under the prospectus supplement are intended to be used to acquire real property infrastructure assets through one or more subsidiaries, partnerships or joint ventures formed to acquire or finance such assets. We may also use proceeds to retire all or a portion of any debt we may incur or have incurred, or for working capital purposes, including the payment of distributions, interest, and operating expenses, including legal expenses. Retirement of debt may include the retirement of all or a portion of the Bridge Loan.  Under the terms of the ATM Agreement, the Trust pays to MLV fees equal to 3% of the gross proceeds of any sales made under the prospectus supplement. The Trust did not sell any common shares under the prospectus supplement during the first quarter of 2013.  During the second quarter of 2013, the Trust commenced “at-the-market” offerings under the prospectus supplement.