Creative Media shares surge 53.92% premarket after selling lending division for $44.9M to boost liquidity.

Creative Media (NASDAQ:CMCT) surged 53.92% in premarket trading following the announcement that it completed the $44.9 million sale of its lending division, First Western SBLC, to PG FR Holding, an affiliate of Peachtree Group. The transaction, net of debt, generated $31.2 million in cash proceeds, which the company stated will strengthen its balance sheet and liquidity while allowing it to refocus on expanding its multifamily real estate portfolio. The sale, finalized after a 2023 securitization of related loan receivables, aligns with the company’s strategic priorities to streamline operations and enhance capital efficiency. The second news event, which similarly highlighted the sale’s closure, directly correlates with the sharp price increase. The third news item, regarding a personnel change at BarkleyOKRP, is unrelated to Creative Media’s operations and thus irrelevant to the stock’s movement.