Mill City Ventures secures $5M revolving credit facility

Rhea-AI Summary

Mill City Ventures III, Ltd. (OTCBB: MCVT) has announced a new $5 million revolving credit facility to enhance its lending capacity. This facility aims to leverage the company's current loan portfolio and meet increasing demand for loans. Management anticipates that this funding will support future earnings growth without causing equity dilution. The credit line is established with a respected board member, highlighting the confidence in the company’s expansion strategy. Specific loan terms were detailed in a current SEC report.

Positive

• Establishment of a $5 million revolving credit facility to enhance lending capacity.
• Anticipated increase in future earnings without equity dilution.

Negative

• Risks include continued demand for loans and increased competition.

MINNEAPOLIS, Jan. 19, 2022 /PRNewswire/ -- Mill City Ventures III, Ltd. (OTCBB: MCVT), a non-bank lender and specialty finance company, announced today the establishment of a revolving credit facility in the initial amount of $5 million. The facility will allow Mill City Ventures to leverage its current loan portfolio and continue meeting demand for loans.  Management believes the facility will also allow for future earnings increases without equity dilution.

"We are so pleased to have the line of credit with one of our well respected board members who has not only been an invaluable resource for our board but now as a resource for the expansion of our loan book," said Mill City Ventures' Chief Executive Officer Douglas M. Polinsky.

Specific terms of the loan were disclosed publicly in a current report filed with the SEC.

Forward-Looking Statements
Forward-looking statements in this release are made pursuant to the "safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including without limitation continued demand for short-term specialty non-bank loans, increased levels of competition, new products or offerings introduced by competitors, changes in the market rates of loans, and other risks.

About Mill City Ventures III, Ltd.
Founded in 2007, Mill City Ventures III, Ltd., is a specialty finance company providing short-term non-bank lending. Additional information can be found at www.sec.gov.

View original content:https://www.prnewswire.com/news-releases/mill-city-ventures-secures-5m-revolving-credit-facility-301463934.html

SOURCE Mill City Ventures III, Ltd.

FAQ

What is the significance of the $5 million revolving credit facility for MCVT?

The $5 million revolving credit facility will enhance Mill City Ventures' lending capacity and support future earnings growth without equity dilution.

Who is involved in the new credit facility for Mill City Ventures?

The credit facility is established with a well-respected board member of Mill City Ventures, indicating strong board support.

What potential risks does Mill City Ventures face with the new credit facility?

Mill City Ventures faces risks related to demand for loans, competition, and market conditions affecting loan rates.

When was the revolving credit facility announced by Mill City Ventures?

The revolving credit facility was announced on January 19, 2022.

Where can I find more information about Mill City Ventures' financial activities?

Additional information can be found in the SEC reports and on the Mill City Ventures website.