RAIT Financial Trust (fka RASFQ)

[naturalborninvestor]

Item 4 – Purpose of Transaction.
The following shall be added to Item 4:
On October 11, 2017, the Investor delivered to the Issuer a Put Right Notice (the “Put Right Notice”) pursuant to Section 9 of the Warrant Agreements and Section 9 of the agreements evidencing the Common Share Appreciation Rights (the “Common Share Appreciation Rights Agreements”). As contemplated by the Warrant Agreements and the Common Share Appreciation Rights Agreements, upon the Investor’s delivery of the Put Right Notice, the Issuer must purchase from the Investor all Warrants and SARs held by the Investor and subject to the Put Right Notice, at the Put Redemption Price (as defined in the Warrant Agreements and the Common Share Appreciation Rights Agreements). The Investor expects to receive, no later than ten (10) days following delivery of the Put Right Notice pursuant to the Warrant Agreements and the Common Share Appreciation Rights Agreements, $12,215,130 as consideration for its put of the Warrants to the Issuer and $8,284,870 as consideration for its put of the SARs to the Issuer. As a result of the Investor’s exercise of its put rights pursuant to the Put Right Notice with respect to the Warrants, the Reporting Persons no longer beneficially own any Common Shares.

These were warrants redeemable with a "put right", so issuer had to buy them back at a predetermined price. Similarly to a put option that gains value when the price drops below exercise price, these warrants were in the money and investor utilized its right to hand them back.