PHILADELPHIA and NEW YORK, Sept. 25, 2013 (GLOBE NEWSWIRE) -- Institutional Financial Markets, Inc. (NYSE MKT:IFMI) ("IFMI"), a financial services firm specializing in credit-related fixed income investments, today announced that it has completed its $13.7 million strategic investment transaction pursuant to securities purchase agreements (the "Purchase Agreements") with Mead Park Capital Partners LLC ("Mead Park Capital") and Cohen Bros. Financial, LLC ("Cohen Bros. Financial"), the terms of which were previously announced. The issuance of securities in connection with the transaction was approved by IFMI's stockholders at the 2013 Annual Meeting of Stockholders (the "Annual Meeting") held on September 24, 2013.
At the Annual Meeting, and as previously announced, Jack J. DiMaio, Jr., CEO and founder of Mead Park, and Christopher Ricciardi, a partner of Mead Park and former President of IFMI were elected to IFMI's Board of Directors. In addition, Daniel G. Cohen was named Vice Chairman of the Board, and Mr. DiMaio was named Chairman of the Board.
Mr. Cohen said, "This is an important time for IFMI, and we believe these investments will serve to bolster our operations and generate increased returns for our stockholders. I also welcome Jack and Chris to the Board of Directors. Their considerable capital markets experience and results-oriented approach will serve us well as we position IFMI for long-term success."Mr. DiMaio said, "We are pleased to have completed our strategic investment in IFMI, and I look forward to working closely with the IFMI Board of Directors and management team to grow a first-tier structured products platform. We intend to hit the ground running, as we focus on IFMI's core competencies to drive enhanced value for all stakeholders." Under the Purchase Agreements, Mead Park Capital and EBC 2013 Family Trust ("EBC Trust"), a permitted assignee of Cohen Bros. Financial, have invested an aggregate of $13.7 million into IFMI. EBC Trust was established by and is controlled by Mr. Cohen. Of the $13.7 million investment, Mead Park Capital invested $3.9 million to purchase 1,949,167 shares of common stock and $5.8 million in newly issued 8% convertible senior notes, and EBC Trust invested $1.6 million to purchase 800,000 shares of common stock and $2.4 million in a newly issued 8% convertible senior note. The common stock issued pursuant to the issuance was sold to Mead Park Capital and EBC Trust for $2.00 per share. The newly issued notes are convertible into an aggregate of 4,086,308 shares of common stock at $3.00 per share. The common stock purchased by Mead Park Capital and EBC Trust, assuming full conversion of the convertible senior notes into shares of common stock, and assuming Mr. Cohen's IFMI LLC units have been exchanged for shares of the common stock, represents a pro forma ownership interest in the Company of 17% and 32%, respectively. The invested capital is expected to be deployed in IFMI's operating businesses and for working capital needs.