On August 19, 2011, Apple REIT Eight announced that its board of directors had authorized the evaluation of a possible consolidation with Apple REIT Six, Seven, and Nine which may ultimately conclude in an IPO for the new combined enterprise. The full SEC filing is as follows:
"Apple REIT Eight, Inc. (the “Company”) announced today that its board of directors has authorized the evaluation of a potential consolidation transaction in which the Company, Apple REIT Six, Inc., Apple REIT Seven, Inc. and Apple REIT Nine, Inc. would be combined, which consolidation transaction could also include a listing of the stock of the combined enterprise for trading on a national exchange at the time of such combination or at a future date.
The Company has not made a decision to pursue any particular transaction, and there can be no assurance that the evaluation of a potential consolidation transaction will result in such transaction being accomplished, or that the potential consolidation transaction or any other strategic alternative will be pursued. The Company has not set a timetable for completion of the evaluation process, and it does not expect to comment further unless and until its board of directors has approved a specific transaction, or it otherwise deems further disclosure is appropriate or required by law."
Unfortunately for Apple REIT investors, a consolidation and IPO will likely not alter the fact that these REITs are worth significantly less than what investors purchased them at. For an investor to break even, the consolidated Apple REIT must IPO at what the investor purchased the shares at (usually $11/share). Anything less than that would cause investor to suffer losses, and those investor who sell their shares on the open market would actually realize these losses.
Even in light of this development, there may hope for Apple REIT investors. If you are an investor who is trying to get out of the Apple REITs, please contact one of our attorneys at 312-332-0000 to discuss your recovery options. Our attorneys are representing investors who have suffered losses investing in the Apple REITs along with those who are seeking to rescind (get out of) their investment in these products.
Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by unsuitable investment recommendations, breach of fiduciary duty, negligence or other misconduct. We have extensive experience representing investors in arbitration and litigation disputes with securities broker-dealers and investment advisory firms, and have recovered tens of millions of dollars for investors.
n August 19, 2011, Apple REIT Eight announced that its board of directors had authorized the evaluation of a possible consolidation with Apple REIT Six, Seven, and Nine which may ultimately conclude in an IPO for the new combined enterprise. The full SEC filing is as follows:
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