Mill City Ventures III, Ltd. Provides Short-Term Loan to Mustang Litigation Funding

Rhea-AI Summary

Mill City Ventures III, Ltd. (NASDAQ:MCVT) has entered into a short-term financing arrangement of $5 million with Mustang Funding, LLC, as part of their ongoing merger process. This loan, which will mature in nine months, aims to provide Mustang with immediate liquidity and marks a significant step toward the anticipated merger between the two companies. CEO Douglas M. Polinsky expressed optimism about the transformative potential of the merger, while Mustang President Jimmy Beltz highlighted the importance of this collaboration for growth.

Positive

• Secured a $5 million short-term loan, enhancing Mustang's liquidity.
• Represents a pivotal step in the proposed merger with Mustang.
• Management projects the merger to be transformational for the combined entity.

Negative

• Short-term financing arrangements could indicate liquidity concerns.
• Risks associated with the merger and fulfillment of conditions outlined in the letter of intent.

MINNEAPOLIS, MN / ACCESSWIRE / December 14, 2022 / Mill City Ventures III, Ltd. ("Mill City") (NASDAQ:MCVT), a specialty short-term finance and non-bank lender, announced today that, in accordance with its previously announced letter of intent regarding a proposed merger transaction with Mustang Funding, LLC dba Mustang Litigation Funding ("Mustang"), it has entered into a $5 million short-term financing arrangement with Mustang in furtherance of the proposed merger. The related short-term note is scheduled to mature on the ninth-month anniversary of the loan.

Mill City Chief Executive Officer, Douglas M. Polinsky, said, "Our announcement on December 6, 2022, outlined a few conditions set forth in the letter of intent, one of which was the consummation of a short-term loan by Mill City to Mustang. This $5 million short-term loan that we closed not only provides Mustang with short-term liquidity, but also marks the first step in what we believe will be an eventual combination transaction between Mill City and Mustang as outlined in our letter of intent and related public announcement. This is an exciting time for Mill City, as we believe that the proposed transaction with Mustang will be transformational for our combined company."

Mustang President, Jimmy Beltz, said, "We are excited about taking the next steps in our company's growth and development, and look forward to working towards our goals with Mill City's team."

About Mill City Ventures III, Ltd.

Founded in 2007, Mill City Ventures III, Ltd., is a specialty short-term finance company providing short-term non-bank lending primarily to small businesses, both private and public. Additional information can be found at www.sec.gov or www.millcityventures3.com.

About Mustang Litigation Funding

Founded in 2018, Mustang Funding, LLC dba Mustang Litigation Funding looks for best in class capital solutions for the legal industry through funding law firms, plaintiffs, vendors and other opportunistic legal assets. More information can be found at www.mustangfunding.com

Forward-Looking Statements and Safe Harbor Notice

All statements other than statements of historical facts included in this press release are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as "believe," "projected," "proposed," "expect," "possibility," "anticipate," or "likely." Forward-looking statements are based on estimates, assumptions and opinions of management at the time the statements are made. Nevertheless, the outcomes of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current expectations or implied results. Investors should carefully read the risk factors set forth in the Company's prospectus contained within the Form S-1 filed with the SEC on April 26, 2022, as amended, subsequent filings and future periodic reports filed with the SEC. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.

The information set forth herein speaks only as of the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release, other than as required by law.

Contact:

Joseph A. Geraci, CFO
952-479-1920

Investor Contact:

TraDigital IR
John McNamara
917-658-2602
john@tradigitalir.com

SOURCE: Mill City Ventures III, Ltd.

View source version on accesswire.com:
https://www.accesswire.com/731788/Mill-City-Ventures-III-Ltd-Provides-Short-Term-Loan-to-Mustang-Litigation-Funding

FAQ

What is the significance of Mill City Ventures III's $5 million loan to Mustang Funding?

The loan provides Mustang with immediate liquidity and is a key step towards the merger between Mill City and Mustang.

When is the maturity date for the short-term loan provided by Mill City Ventures III?

The short-term note is scheduled to mature nine months after the loan was issued.

What are the expected outcomes of the Mill City and Mustang merger?

Mill City management believes the merger will be transformational for both companies.