Receivables firm sells a 10% convertible debenture and an associated warrant to purchase 200,000 shares of the company’s common stock.Velocity Asset Management announced Monday it has completed a $1.8 million financing through the sale of a 10% convertible debenture and an associated warrant to purchase 200,000 shares of the company”s common stock at an exercise price of $3.10 per share. The debenture can be converted into shares of the Ramsey-based company”s common stock at $4.00 per share. Velocity has the right to repay any portion of the debenture until March 31, 2006, without penalties.
Velocity focuses on the purchase, resale, and collection of overdue receivables and other distressed assets through its three wholly owned subsidiaries. Velocity Investments is a consumer-receivables asset management and liquidation company; J. Holder invests in real property sold at sheriff”s foreclosure sales and judgment execution sales, and acquires defaulted mortgages and partial interests in real property; and VOM focuses on purchasing and managing New Jersey municipal tax liens.