Marblegate Capital Corporation Announces Completion of Business Combination with Marblegate Acquisition Corp. and DePalma Companies to Establish Publicly Listed Vertically Integrated NYC Taxi Medallion Lender and Fleet Operator

Rhea-AI Summary

Marblegate Capital (MGTE) has completed its business combination with Marblegate Acquisition Corp. (formerly GATE) and DePalma Companies, establishing the first publicly traded, vertically integrated NYC taxi medallion lender and fleet operator. The company's common stock and warrants began trading on the OTCQX® Best Market under symbols MGTE and MGTEW on April 10, 2025.

The company holds a significant market position with a loan portfolio collateralized by over 1,700 medallions and ownership of more than 2,000 medallions, making it the largest lender and owner of NYC taxi medallions. Marblegate played a important role in implementing the NYC MRP+ medallion debt relief program, aimed at providing financial relief to drivers affected by predatory lending practices.

Positive

• Largest NYC taxi medallion lender and owner with over 3,700 combined medallions
• Vertical integration combining lending and fleet operations
• Successfully established public market presence through business combination
• Strong market position in implementing medallion debt relief program

Negative

• Trading on OTCQX rather than major exchange like Nasdaq
• Operating in historically volatile NYC taxi medallion market
• Subject to regulatory risks in taxi industry
• Exposure to potential market disruption from ride-sharing services

Insights

Financial Analyst

This business combination creates a significant new entity in the NYC taxi medallion space. Marblegate Capital has now emerged as the first publicly traded, vertically integrated player in this historically fragmented market, combining lending operations with direct fleet management.

The vertical integration strategy is particularly noteworthy - with a loan portfolio collateralized by more than 1,700 medallions and ownership of over 2,000 medallions, MCC has positioned itself with multiple revenue streams and operational insights across the entire value chain. This structure could create operational efficiencies that standalone lenders or fleet operators lack.

The company's transition to public markets via OTCQX trading (rather than direct Nasdaq listing) represents a staged approach to public market access. Investors should note the forward-looking statements indicate an intention to eventually list on Nasdaq, which would provide greater liquidity and institutional investor access.

The medallion lending market has historically experienced significant volatility, with medallion values facing pressure from ridesharing competition. MCC's involvement in the NYC MRP+ debt relief program suggests they've been working to stabilize this market, potentially creating a more sustainable business environment before going public.

The absence of specific financial projections or transaction details in this announcement limits our ability to quantify near-term impact, making this a structural development rather than one with immediately measurable financial consequences.

Business Strategy Consultant

Marblegate's consolidation strategy in the NYC taxi medallion market represents a significant attempt to institutionalize a historically fragmented industry. By simultaneously operating as lender, medallion owner, and fleet operator, MCC has created an integrated business model that provides multiple leverage points across the taxi ecosystem.

This vertical integration offers several strategic advantages: enhanced market intelligence from operating at multiple points in the value chain, improved operational efficiency through scale, and potentially greater pricing power in medallion transactions. Their claimed position as the largest lender and owner of NYC taxi medallions suggests a deliberate effort to achieve market consolidation.

What's particularly interesting is Marblegate's background in distressed and special situations investing. They've effectively transformed a market recovery opportunity into a going concern business. Their involvement in the NYC MRP+ medallion debt relief program appears to have been both a socially responsible initiative and a strategic move to stabilize an industry where they had significant exposure.

The choice to initially list on OTCQX rather than Nasdaq likely reflects pragmatic considerations about timing and market conditions. The company's ability to eventually uplist will depend on demonstrating sustainable operations and meeting listing requirements.

This transaction represents a unique case study in how private capital can reshape a regulated service industry through consolidation, though long-term success will depend on how effectively MCC can modernize fleet operations and adapt to continued competition from ridesharing services.

Marblegate positioned to leverage its successful record of driving positive change in the taxi industry to deliver value for owners, drivers, and investors

Firm was pivotal to the success of NYC Taxi Medallion MRP+ program which has been hailed by federal, state and city officials for stabilizing the industry

NEW YORK, April 10, 2025 /PRNewswire/ -- Marblegate Capital Corporation (MCC) and Marblegate Acquisition Corp. (MAC) (previously Nasdaq: GATE), a publicly traded special purpose acquisition company sponsored by Marblegate Asset Management (Marblegate), an investment management firm that focuses on distressed and special situation investing, announced the completion of their business combination and merger with DePalma Acquisition I LLC and DePalma Acquisition II LLC (together, the DePalma Companies). The common stock and warrants of MCC began trading today, April 10, 2025, on OTCQX^® Best Market operated on The OTC Market systems under the symbols MGTE and MGTEW, respectively.

"Marblegate entered the taxi industry seeking to stabilize the marketplace and drive positive change," said Andrew Milgram, Chief Executive Officer of MCC. "This transaction builds on our dynamic track record and aims to transform and professionalize the underserved Taxi medallion market – driving additional investments that will appropriately value medallions, benefiting owners, drivers, and investors."

MCC is the first and largest publicly traded, vertically integrated, full-service fleet operator and specialty finance lender in the NYC taxi market, leveraging Marblegate's years of deep industry experience and expertise, and strong portfolio operations capabilities to create a business that is transforming and institutionalizing the taxi industry.

MCC has a loan portfolio collateralized by more than 1,700 medallions and owns over 2,000 medallions – which MCC believes makes it the largest lender and owner of NYC taxi medallions. This, in addition to being one of the largest NYC medallion fleet operators, differentiates MCC in the NYC taxi marketplace as not just a market leader with an end-to-end understanding of the taxi business but the most impactful player in the industry driving positive change. Marblegate played a pivotal role in the successful launch and implementation of the NYC MRP+ medallion debt relief program, designed to provide financial relief to drivers who were previously subject to predatory lending practices.

Advisors
Paul Hastings LLP served as legal advisor to MCC and MAC. Reed Smith LLP served as legal advisor to the DePalma Companies. Piper Sandler & Co. served as capital markets advisor to MAC in connection with the business combination. Centri Business Consulting, LLC served as accounting and finance advisor to the DePalma Companies. Huron Transaction Advisory LLC provided a fairness opinion to the Board of Directors of MAC in connection with the business combination with the DePalma Companies.

About Marblegate Capital Corporation
Marblegate Capital Corporation (OTCQX:MGTE), is a vertically integrated, full-service fleet operator and specialty finance lender in the New York City (NYC) taxi market. Marblegate Capital Corporation specializes in NYC taxi medallions as a lender, owner, and fleet operator. With a loan portfolio collateralized by more than 1,700 medallions and over 2,000 medallions owned, we believe we are the largest lender and owner of NYC taxi medallions as well as one of the largest NYC medallion Fleet operators*. What differentiates Marblegate Capital Corporation is its end-to-end understanding of the taxi business and position as the most impactful player in the industry driving positive change. Marblegate Asset Management (Marblegate) is Marblegate Capital Corporation's external manager. Founded in 2008, Marblegate is an investment management firm that focuses on distressed and special situation investing. Marblegate transforms complex situations by taking a hands-on approach to drive positive business transformations amid complexity to create value and sustainable results. Marblegate played a pivotal role in the successful launch and implementation of the NYC MRP+ medallion debt relief program, designed to provide financial relief to drivers who were previously subject to predatory lending practices.

* Data as of 9/30/24 and includes medallions that are not currently registered with the TLC

Forward-Looking Statements

This communication contains "forward-looking statements," within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may generally be identified by terminology such as "will," "shall," "may," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar words or expressions that predict or indicate future events or trends that are not statements of historical matters. These statements are only predictions. MCC has based these forward-looking statements largely on their then-current expectations and projections about future events and financial trends as well as the beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond MCC's control. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: (i) MCC's expectations regarding the impact of its securities trading on the OTC Markets; (ii) MCC's ability to have its securities listed on Nasdaq following the business combination; (iii) the outcome of any legal proceedings that may be instituted against the parties and others related to the business combination; (iv) the ability to implement business plans, forecasts, and other expectations after the completion of the business combination, and identify and realize additional opportunities; and (v) the evolution of the markets in which MCC will compete. More information on potential factors that could affect MCC's financial results is included from time to time in its public reports filed with the SEC that are available on the SEC's website at www.sec.gov, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as well as the Proxy Statement/Prospectus MCC filed in connection with the solicitation of proxies for the meeting of stockholders to be held to approve, among other things, the proposed business combination. All of the forward-looking statements made in this Current Report on Form 8-K are expressly qualified by the cautionary statements contained or referred to herein. Accordingly, you should not rely upon forward-looking statements as predictions of future events. MCC cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this communication relate only to events as of the date on which the statements are made. Except as required by applicable law or regulation, MCC undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of an unanticipated event.

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SOURCE Marblegate Capital Corporation

FAQ

What assets does Marblegate Capital (MGTE) control in the NYC taxi market?

MGTE controls over 1,700 medallions as loan collateral and owns more than 2,000 medallions, making it the largest NYC taxi medallion lender and owner.

When did Marblegate Capital (MGTE) begin trading on OTCQX?

MGTE began trading on the OTCQX Best Market on April 10, 2025, following the completion of its business combination.

What companies were involved in the Marblegate business combination?

The business combination involved Marblegate Capital , Marblegate Acquisition Corp. (former GATE), and DePalma Companies (DePalma Acquisition I and II ).

What is Marblegate's role in the NYC MRP+ medallion program?

Marblegate played a pivotal role in launching and implementing the NYC MRP+ medallion debt relief program, which provides financial relief to drivers affected by predatory lending.