Credit Depot $9 million private placement fully subscribed.GAINESVILLE, Ga.--(BUSINESS WIRE)--Aug. 15, 1996--Credit Depot Corporation (Nasdaq: LEND) today announced that its private placement of $9 million of Convertible Secured Notes pursuant to Regulation D has been fully subscribed Fully Subscribed A situation in which an underwriting firm has successfully sold to investors all of its available issues of a public offering of securities. When the issue is fully subscribed, the underwriter's risk of being undersubscribed (being unable to sell its allotment of . The Company had previously announced the sale of $8.4 million of Convertible Secured Notes pursuant to this placement. The notes bear interest at a rate of 10% per annum Per annum Yearly. and are convertible into shares of the Company's common stock at a conversion price of $2.50 per share. Heiko Thieme acted as advisor to the Company and J. Michael Reisert, Inc. acted as placement agent on behalf of the Company. The majority of the notes were placed by Taglich Brothers, D'Amadeo, Wagner & Company, Incorporated, who acted as the selected dealer. A portion of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from these notes were used to repay $2,250,000 of matured subordinated notes, and the balance will be used to originate mortgage loans and for general corporate purposes. The balance of the subordinated notes were exchanged for a mortgage lending warehouse facility. Gerald F. Sullivan Sr., President and Chief Executive Officer, stated: "Over the past few years, a major impediment to our ability to grow our business and achieve profitability has been our consistently inadequate financial resources. With the funds provided by our fully subscribed private placement, Credit Depot now has a financial foundation to support our business gathering infrastructure on which we plan to build a significant industry presence. "Our business is extending first mortgage loans to credit-impaired individuals who are generally unable to obtain financing from conventional lending sources but whom we believe are viable creditors who also afford us sound loan-to-value ratios on their underlying property. The key factors that contribute to the success of a Company in our business an understanding of the dynamics of the subprime residential mortgage finance industry, automated processing and tracking systems and credit collection and financial disciplines are developed strengths of our Company, now complemented by our improved financial foundation. We believe that we have the resources in place in a growing industry segment to enhance shareholder value over time." "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements in this press release regarding matters that are not statements of historical fact, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc plans, strategies, expectations and future economic results, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may differ materially from the statements made, as a result of various factors, including risks associated with the Company's mortgage loan investments, such as the risks of defaults on mortgage loans, economic and other factors which impact real estate values and prevailing interest rates, the Company's ability to originate a sufficient volume of mortgage loans, the Company's ability to resell the mortgage loans in the secondary market, and other factors which are listed from time to time in the Company's Securities and Exchange Commission filings. Credit Depot Corporation is a multi-state financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Company that provides residential real estate financing to individuals unable to secure loans through conventional sources. The Company currently originates loans through its offices in Florida, Georgia, Indiana, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Ohio, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Tennessee and Kentucky. These loans are collateralized by first mortgages, primarily on owner-occupied residential properties. CONTACT: Credit Depot Corporation, Gainesville Gerald F. Sullivan/John Thomas, (770) 531-9927 or Kehoe, White, Savage & Co., Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of John P. Kehoe/Van Negris, (212) 888-1616 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion