Manhattan Bridge Capital, Inc. Announces The Closing Of A $500,000 Private Placement Of 6 5/8% 3 Year Notes
NEW YORK, Dec. 29, 2010 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN), announced today that it had closed a $500,000 private placement offering to accredited investors of three-year 6 5/8% per annum secured notes, to be held to maturity. The offering was managed by Paulson Investment Company, Inc. (Nasdaq:PLCC). For the purpose of the offering, the Company established a wholly-owned subsidiary named MBC Funding I. The notes are secured by first mortgage positions or cash in a ratio of $1.50 of collateral for each $1 invested plus a parent company guarantee. The Company will pay a one-time 5 % concession fee to Paulson Investment Company, Inc. and $55,000 in legal fees.
Assaf Ran, Chairman of the Board and CEO, stated, "This day, we achieved a milestone by executing a working model to leverage our strong first mortgage portfolio and cash position. This highly secured note offers a safe solution to yield starved investors while allowing the Company to comfortably continue its path of growth and increasing earnings."
Manhattan Bridge Capital, Inc. offers short-term loans to real estate investors (also known as hard money) to fund their acquisition of properties located in New York Metro area. Currently, our customers' purchases are often from banks or distressed sellers. Substantially all of our loans are secured by first mortgages on the acquired real estate. In addition, the principals of our corporate borrowers personally guaranty the loans and, as additional collateral and protection, pledge the borrower's stock. We operate the web site: http://www.manhattanbridgecapital.com .This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are typically identified by the words "believe," "expect," "intend," "estimate" and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial conditions and results of operations and our business and growth strategies. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i) the successful integration of new businesses that we may acquire; (ii) the success of new operations which we have commenced and of our new business strategy; (iii) our limited operating history in our new business; (iv) potential fluctuations in our quarterly operating results; and (v) challenges facing us relating to our growth. The accompanying information contained in this report, including the information set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations", identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.
CONTACT: Manhattan Bridge Capital, Inc. Assaf Ran, CEO (212) 489-6800
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