Velocity Asset Management, Inc. (AMEX: JVI www.velocitycollect.com) which purchases delinquent consumer receivables and uses an outsourced litigation model to collect them, announced today it has completed the second and final tranche of its private placement.
In aggregate, the private placement totaled 862,500 restricted shares of Common Stock at a price of $2.00 per share, yielding net proceeds of approximately $1,596,500, including $375,000 from the second tranche.
Investors in the private placement also received three-year warrants to purchase an aggregate of 172,500 shares of Velocity common stock for $2.50 per share.
Net proceeds of the financing are being used to fund the purchase of additional pools of delinquent consumer receivables as well as for working capital.
Velocity President and CEO Jack Kleinert, commented, “Proceeds from these financings, combined with available borrowings under our credit facility with Wells Fargo Foothill, will enable Velocity to complete the purchase of additional pools of delinquent consumer receivables. Recent challenges in the capital markets have created attractive pricing for consumer receivables meeting our purchase criteria. Exploiting this environment, we have already completed the purchase of a $30.7 million loan package using proceeds from these financings and available borrowings, and are looking to put the remaining funds to work in the near term.”
Security Research Associates, Inc. acted as placement agent in connection with the offerings.
To learn more about Velocity Asset Management, visit www.velocitycollect.com.