By Sheri Kasprzak
New York, Oct. 31 - Velocity Asset Management, Inc. said it has concluded a private placement of convertible debentures for $1.8 million.
The 10% debentures mature on March 31, 2006 and are initially convertible into common shares at $4.00 each. After April 1, any portion of the debentures not converted or repaid will be converted into common shares at $2.525 each, a price equal to 125% of the five-day average closing price immediately before closing.
The investors also received warrants for 200,000 shares, exercisable at $3.10 each.
Based in Ramsey, N.J., Velocity acquires and manages portfolios of unsecured consumer receivables.
Issuer: | Velocity Asset Management, Inc.
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Issue: | Convertible debentures
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Amount: | $1.8 million
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Maturity: | March 31, 2006
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Coupon: | 10%
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Price: | Par
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Yield: | 10%
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Conversion price: | $4.00
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Warrants: | For 200,000 shares
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Warrant strike price: | $3.10
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Settlement date: | Oct. 31
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Stock price: | $2.00 at close Oct. 28
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