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contextRef="Duration_10_26_2021_To_10_26_2021_yb_cmP4tlEKgUAjX5ct1sw" name="dei:AmendmentFlag" id="Tc_X3EWGAaJbk6P3jwqg2ri2w_3_1">false</ix:nonNumeric></ix:hidden><ix:references><link:schemaRef xlink:href="tmb-20211026.xsd" xlink:type="simple"></link:schemaRef></ix:references><ix:resources><xbrli:context id="Duration_10_26_2021_To_10_26_2021_yb_cmP4tlEKgUAjX5ct1sw"><xbrli:entity><xbrli:identifier scheme="http://www.sec.gov/CIK">0001745032</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:startDate>2021-10-26</xbrli:startDate><xbrli:endDate>2021-10-26</xbrli:endDate></xbrli:period></xbrli:context></ix:resources></ix:header></div><div style="max-width:100%;padding-left:10.35%;padding-right:10.35%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><a id="_bc827c99_dc1a_4af7_9eb8_7e14136d48e0"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><b style="font-size:12pt;font-weight:bold;">UNITED STATES</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><b style="font-size:12pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;">Washington, DC 20549</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;text-align:center;margin:0pt;"><b style="font-weight:bold;">FORM </b><ix:nonNumeric contextRef="Duration_10_26_2021_To_10_26_2021_yb_cmP4tlEKgUAjX5ct1sw" name="dei:DocumentType" id="Narr_forl25RN50mHMa_6as7fYw"><b style="font-weight:bold;">8-K</b></ix:nonNumeric></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><b style="font-weight:bold;">CURRENT REPORT</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><b style="font-weight:bold;text-transform:uppercase;">Pursuant to Section 13 or 15(</b><b style="font-weight:bold;">d</b><b style="font-weight:bold;text-transform:uppercase;">) of</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><b style="font-weight:bold;text-transform:uppercase;">The Securities Exchange Act of 1934</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;">Date of Report (Date of earliest event reported): <ix:nonNumeric 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style="font-size:0pt;visibility:hidden;">&#8203;</span></p></div></div>
<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:79.3%;border:0;margin:30pt 10.35% 30pt 10.35%;"></div><div style="max-width:100%;padding-left:10.35%;padding-right:10.35%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><a id="_88481f96_5ea4_4400_93cd_aeca3182a26e"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><b style="font-weight:bold;">ITEM 3.02 UNREGISTERED SALES OF EQUITY SECURITIES</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:38.15pt;margin:0pt;"><span style="background-color:#ffffff;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:38.15pt;margin:0pt;"><span style="background-color:#ffffff;">On June&#160;1, 2018, Lodging Fund REIT III, Inc. (the &#8220;Company&#8221;) commenced a private placement offering of up to $100,000,000 in shares of its common stock (the &#8220;Offering&#8221;). The Company is offering these securities in reliance upon exemptions from the registration requirements provided by Section&#160;4(2) of the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;) and Regulation&#160;D under the Securities Act relating to sales not involving any public offering. The securities are being offered and sold only to purchasers who are &#8220;accredited investors,&#8221; as defined in Rule&#160;501 of Regulation&#160;D of the Securities Act, and without the use of general solicitation, as that concept is embodied in Regulation&#160;D. In addition to sales of common stock for cash, the Company has adopted a dividend reinvestment plan (&#8220;DRIP&#8221;), which permits stockholders to reinvest their distributions back into the Company. Except as otherwise provided in the offering memorandum for Offering, the shares offered in the Offering for cash are being offered at an initial price of $10.00 per share, with shares issued pursuant to the DRIP being purchased at an initial price of $9.50 per share. </span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:38.15pt;margin:0pt;"><span style="background-color:#ffffff;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:38.15pt;margin:0pt;"><span style="background-color:#ffffff;">On June 15, 2020, the Operating Partnership commenced a private placement offering of limited partnership units in the OP, designated as Series GO LP Units, with a maximum offering of $20,000,000, which may be increased to $30,000,000 in the sole discretion of the General Partner, (the &#8220;GO Unit Offering&#8221;). The Operating Partnership is offering these securities in reliance upon exemptions from the registration requirements provided by Section&#160;4(2) of the Securities Act and Regulation&#160;D under the Securities Act relating to sales not involving any public offering. The securities are being offered and sold only to purchasers who are &#8220;accredited investors,&#8221; as defined in Rule&#160;501 of Regulation&#160;D of the Securities Act, and without the use of general solicitation, as that concept is embodied in Regulation&#160;D. Subject to restrictions on ownership in order to comply with rules governing real estate investment trusts and the terms of the partnership agreement of the Operating Partnership, each holder of Series GO LP Units (a &#8220;Series&#160;GO Limited Partner&#8221;) will have the right to exchange its Series&#160;GO LP Units for, at the option of the Operating Partnership, an equivalent number of shares of common stock of the Company (&#8220;Common Shares&#8221;), or cash equal to the fair market value of the Common Shares (the &#8220;Cash Amount&#8221;) which would have otherwise been received pursuant to such exchange. The exchange right is not available until all of the following have occurred (the &#8220;Exchange Date&#8221;): &#160;(i)&#160;the Common Shares are listed on a national securities exchange, the sale of all or substantially all of the GP Units and Interval Units held by the Company or any sale, exchange or merger of the Company or the Operating Partnership or, as determined in the sole discretion of the Company, the occurrence of a similar event; (ii)&#160;the Series&#160;GO Limited Partner has held its Series&#160;GO LP Units for at least one&#160;year; (iii)&#160;the Common Shares to be issued pursuant to the redemption have been registered with the SEC and the registration statement has been declared effective, or an exemption from registration is available; and (iv)&#160;the exchange does not result in a violation of the shareholder ownership limitations set forth in the Company&#8217;s articles of incorporation. Notwithstanding the above, the Company may waive any of the requirements above in its sole discretion other than (ii)&#160;or (iv).</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:38.15pt;margin:0pt;"><span style="background-color:#ffffff;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:38.15pt;margin:0pt;"><span style="background-color:#ffffff;">On June 15, 2020, the Operating Partnership established a new series of limited partnership units in the Operating Partnership, designated as Series T Limited Units (the &#8220;Series T Limited Units&#8221;). &#160;The Operating Partnership may issue the Series T Limited Units from time to time to persons who contribute direct or indirect interests in real estate to the Operating Partnership. &#160;The Operating Partnership issued an aggregate of 1,905,369 Series T Limited Units to contributors in connection with contributions of hotel properties on February 4, 2021, May 12, 2021 and August 3, 2021. These securities were issued in reliance upon exemptions from the registration requirements provided by Section&#160;4(2) of the Securities Act and Regulation&#160;D under the Securities Act relating to sales not involving any public offering. The securities were offered and sold only to purchasers who are &#8220;accredited investors,&#8221; as defined in Rule&#160;501 of Regulation&#160;D of the Securities Act, and without the use of general solicitation, as that concept is embodied in Regulation&#160;D. Subject to the terms of the partnership agreement of the Operating Partnership, each holder of Series T Limited Units (a &#8220;Series&#160;T Limited Partner&#8221;) will have its Series T Limited Units </span>convert into Common Limited Partnership Units of the Operating Partnership (&#8220;Common LP Units&#8221;) beginning 36 months after the issuance of the Series T Limited Units, at which point the value will be calculated pursuant to the terms of the Limited Partnership Agreement and the formula set forth in the contribution agreement between the Operating Partnership and the Series T Limited Partner. &#160;The number of Common LP Units to be issued to the contributor based on such conversion may be higher or lower than the initial valuation of the Series T Limited Units. &#160;<span style="background-color:#ffffff;"> Subject to restrictions on ownership in order to comply with rules governing real estate investment trusts and the terms of the partnership agreement of the Operating Partnership, each holder of Common LP Units will have the right to exchange its Common LP Units for, at the option of the Operating Partnership, an equivalent number of Common Shares or Cash Amount which would have otherwise been received pursuant to such exchange. &#160;The Exchange Right is not </span></p></div><div style="clear:both;margin-bottom:30pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:24pt 0pt 0pt 0pt;"><span style="visibility:hidden;">&#8203;</span></p></div></div>
<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:79.3%;border:0;margin:30pt 10.35% 30pt 10.35%;"></div><div style="max-width:100%;padding-left:10.35%;padding-right:10.35%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><span style="background-color:#ffffff;">available until the Exchange Date (as defined in the previous paragraph). Notwithstanding the above, the Company may waive any of the requirements of the Exchange Date described in the paragraph above in its sole discretion other than (ii) or (iv). The number of Common LP Units issuable upon conversion of the Series T Limited Units is not determinable at this time, as such number will not be calculated until a future date pursuant to the formula set forth in the applicable contribution agreement entered into by the Series T Limited Partner. &#160;As a result, the number of shares described below in connection with the Series T Limited Unit conversions assumes a projected conversion rate based on the value of the contributed property assigned by third-party appraisals received by the Company on or prior to the date of this filing. </span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:38.15pt;margin:0pt;"><span style="background-color:#ffffff;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:38.15pt;margin:0pt;"><span style="background-color:#ffffff;">During the period from July 23, 2021 to October 26, 2021, the Company issued and sold 170,828 shares of common stock, including 56,566 shares issued pursuant to the DRIP and 18,905 shares issued pursuant to the projected conversion from Series T Units to common stock, and the Operating Partnership issued and sold 279,739 Series GO LP Units, and the Company and the Operating Partnership received aggregate proceeds of $3.6 million. During the period from July 23, 2021 to October 26, 2021, aggregate selling commissions of $74,179 and marketing and diligence allowances and other wholesale selling costs and expenses of $416,218 were paid in connection with the Offering. During the period from July 23, 2021 to October 26, 2021, aggregate selling commissions of $175,468 and marketing and diligence allowances and other wholesale selling costs and expenses of $61,001 were paid in connection with the GO Unit Offering. As of October 26, 2021, there were 8,270,062 shares of the Company&#8217;s common stock and 1,796,616 Series GO LP Units outstanding.</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:38.15pt;margin:0pt;"><span style="background-color:#ffffff;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="background-color:#ffffff;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:11pt;font-weight:bold;visibility:hidden;">&#8203;</span></p></div></div>
<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:79.3%;border:0;margin:30pt 10.35% 30pt 10.35%;"></div><div style="max-width:100%;padding-left:10.35%;padding-right:10.35%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><b style="font-size:11pt;font-weight:bold;">SIGNATURES</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><span style="font-size:11pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><table style="border-collapse:collapse;font-size:16pt;height:max-content;padding-left:0pt;padding-right:0pt;table-layout:auto;width:100.21%;"><tr style="height:1pt;"><td style="vertical-align:middle;width:44.46%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:50%;transform:translate(0,-50%);width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:1pt;visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:middle;width:6.41%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:50%;transform:translate(0,-50%);width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:1pt;visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:middle;width:3.7%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:50%;transform:translate(0,-50%);width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:1pt;visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:middle;width:45.41%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:50%;transform:translate(0,-50%);width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:1pt;visibility:hidden;">&#8203;</span></p></div></div></td></tr><tr><td style="vertical-align:middle;width:44.46%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:middle;width:6.41%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td colspan="2" style="vertical-align:middle;width:49.12%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><b style="font-size:11pt;font-weight:bold;">LODGING FUND REIT III, INC.</b></p></td></tr><tr><td style="vertical-align:middle;width:44.46%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:middle;width:6.41%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td colspan="2" style="vertical-align:middle;width:49.12%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:11pt;font-weight:bold;visibility:hidden;">&#8203;</span></p></td></tr><tr><td style="vertical-align:middle;width:44.46%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">Dated: November 8, 2021</p></td><td style="vertical-align:middle;width:6.41%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:middle;width:3.7%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">BY:</p></td><td style="vertical-align:middle;width:45.41%;border-bottom:1px solid #000000;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">/s/ Corey R. Maple</p></td></tr><tr><td style="vertical-align:middle;width:44.46%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:middle;width:6.41%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:middle;width:3.7%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:middle;width:45.41%;border-top:1px solid #000000;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><b style="font-weight:bold;">Corey R. Maple</b></p></td></tr><tr><td style="vertical-align:middle;width:44.46%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:middle;width:6.41%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:middle;width:3.7%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:middle;width:45.41%;margin:0pt;padding:1.5pt 0pt 0pt 0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><i style="font-style:italic;">Chairman of the Board, Chief Executive Officer and Secretary</i></p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:1pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></div></div>
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{"company-data": {"conformed-name": "Lodging Fund REIT III, Inc.", "cik": "0001745032", "assigned-sic": "6798", "irs-number": "830556111", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-56082", "film-number": "211388964"}, "business-address": {"street1": "1635 43RD STREET SOUTH, SUITE 205", "city": "FARGO", "state": "ND", "zip": "58103", "phone": "(701)630-6500"}, "mail-address": {"street1": "1635 43RD STREET SOUTH, SUITE 205", "city": "FARGO", "state": "ND", "zip": "58103"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
​
FORM
8-K
​
CURRENT REPORT
Pursuant to Section 13 or 15(
d
) of
The Securities Exchange Act of 1934
​
Date of Report (Date of earliest event reported):
October 26, 2021
​
LODGING FUND REIT III, INC.
(Exact Name of Registrant as Specified in Charter)
​
​
​
​
Maryland
000-56082
83-0556111
(State or Other Jurisdiction of
Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
​
​
​
​
1635 43rd Street South
,
Suite 205
​
Fargo
,
North Dakota
58103
(Address of Principal Executive Offices)
(Zip Code)
​
Registrant's telephone number, including area code:
(
701
)
630-6500
​
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
​
Securities registered or to be registered pursuant to Section 12(b) of the Act.
​
​
​
​
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
None
N/A
N/A
​
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
​
☐
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))
​
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.
☐
​
ITEM 3.02 UNREGISTERED SALES OF EQUITY SECURITIES
​
On June 1, 2018, Lodging Fund REIT III, Inc. (the "Company") commenced a private placement offering of up to $100,000,000 in shares of its common stock (the "Offering"). The Company is offering these securities in reliance upon exemptions from the registration requirements provided by Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act") and Regulation D under the Securities Act relating to sales not involving any public offering. The securities are being offered and sold only to purchasers who are "accredited investors," as defined in Rule 501 of Regulation D of the Securities Act, and without the use of general solicitation, as that concept is embodied in Regulation D. In addition to sales of common stock for cash, the Company has adopted a dividend reinvestment plan ("DRIP"), which permits stockholders to reinvest their distributions back into the Company. Except as otherwise provided in the offering memorandum for Offering, the shares offered in the Offering for cash are being offered at an initial price of $10.00 per share, with shares issued pursuant to the DRIP being purchased at an initial price of $9.50 per share.
​
On June 15, 2020, the Operating Partnership commenced a private placement offering of limited partnership units in the OP, designated as Series GO LP Units, with a maximum offering of $20,000,000, which may be increased to $30,000,000 in the sole discretion of the General Partner, (the "GO Unit Offering"). The Operating Partnership is offering these securities in reliance upon exemptions from the registration requirements provided by Section 4(2) of the Securities Act and Regulation D under the Securities Act relating to sales not involving any public offering. The securities are being offered and sold only to purchasers who are "accredited investors," as defined in Rule 501 of Regulation D of the Securities Act, and without the use of general solicitation, as that concept is embodied in Regulation D. Subject to restrictions on ownership in order to comply with rules governing real estate investment trusts and the terms of the partnership agreement of the Operating Partnership, each holder of Series GO LP Units (a "Series GO Limited Partner") will have the right to exchange its Series GO LP Units for, at the option of the Operating Partnership, an equivalent number of shares of common stock of the Company ("Common Shares"), or cash equal to the fair market value of the Common Shares (the "Cash Amount") which would have otherwise been received pursuant to such exchange. The exchange right is not available until all of the following have occurred (the "Exchange Date"):  (i) the Common Shares are listed on a national securities exchange, the sale of all or substantially all of the GP Units and Interval Units held by the Company or any sale, exchange or merger of the Company or the Operating Partnership or, as determined in the sole discretion of the Company, the occurrence of a similar event; (ii) the Series GO Limited Partner has held its Series GO LP Units for at least one year; (iii) the Common Shares to be issued pursuant to the redemption have been registered with the SEC and the registration statement has been declared effective, or an exemption from registration is available; and (iv) the exchange does not result in a violation of the shareholder ownership limitations set forth in the Company's articles of incorporation. Notwithstanding the above, the Company may waive any of the requirements above in its sole discretion other than (ii) or (iv).
​
On June 15, 2020, the Operating Partnership established a new series of limited partnership units in the Operating Partnership, designated as Series T Limited Units (the "Series T Limited Units").  The Operating Partnership may issue the Series T Limited Units from time to time to persons who contribute direct or indirect interests in real estate to the Operating Partnership.  The Operating Partnership issued an aggregate of 1,905,369 Series T Limited Units to contributors in connection with contributions of hotel properties on February 4, 2021, May 12, 2021 and August 3, 2021. These securities were issued in reliance upon exemptions from the registration requirements provided by Section 4(2) of the Securities Act and Regulation D under the Securities Act relating to sales not involving any public offering. The securities were offered and sold only to purchasers who are "accredited investors," as defined in Rule 501 of Regulation D of the Securities Act, and without the use of general solicitation, as that concept is embodied in Regulation D. Subject to the terms of the partnership agreement of the Operating Partnership, each holder of Series T Limited Units (a "Series T Limited Partner") will have its Series T Limited Units
convert into Common Limited Partnership Units of the Operating Partnership ("Common LP Units") beginning 36 months after the issuance of the Series T Limited Units, at which point the value will be calculated pursuant to the terms of the Limited Partnership Agreement and the formula set forth in the contribution agreement between the Operating Partnership and the Series T Limited Partner.  The number of Common LP Units to be issued to the contributor based on such conversion may be higher or lower than the initial valuation of the Series T Limited Units.
Subject to restrictions on ownership in order to comply with rules governing real estate investment trusts and the terms of the partnership agreement of the Operating Partnership, each holder of Common LP Units will have the right to exchange its Common LP Units for, at the option of the Operating Partnership, an equivalent number of Common Shares or Cash Amount which would have otherwise been received pursuant to such exchange.  The Exchange Right is not
​
available until the Exchange Date (as defined in the previous paragraph). Notwithstanding the above, the Company may waive any of the requirements of the Exchange Date described in the paragraph above in its sole discretion other than (ii) or (iv). The number of Common LP Units issuable upon conversion of the Series T Limited Units is not determinable at this time, as such number will not be calculated until a future date pursuant to the formula set forth in the applicable contribution agreement entered into by the Series T Limited Partner.  As a result, the number of shares described below in connection with the Series T Limited Unit conversions assumes a projected conversion rate based on the value of the contributed property assigned by third-party appraisals received by the Company on or prior to the date of this filing.
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During the period from July 23, 2021 to October 26, 2021, the Company issued and sold 170,828 shares of common stock, including 56,566 shares issued pursuant to the DRIP and 18,905 shares issued pursuant to the projected conversion from Series T Units to common stock, and the Operating Partnership issued and sold 279,739 Series GO LP Units, and the Company and the Operating Partnership received aggregate proceeds of $3.6 million. During the period from July 23, 2021 to October 26, 2021, aggregate selling commissions of $74,179 and marketing and diligence allowances and other wholesale selling costs and expenses of $416,218 were paid in connection with the Offering. During the period from July 23, 2021 to October 26, 2021, aggregate selling commissions of $175,468 and marketing and diligence allowances and other wholesale selling costs and expenses of $61,001 were paid in connection with the GO Unit Offering. As of October 26, 2021, there were 8,270,062 shares of the Company's common stock and 1,796,616 Series GO LP Units outstanding.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LODGING FUND REIT III, INC.
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Dated: November 8, 2021
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BY:
/s/ Corey R. Maple
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Corey R. Maple
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Chairman of the Board, Chief Executive Officer and Secretary
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