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Debt Resolve Launches Subprime Collections
By James Comtois
In announcing its fiscal year 2007 results, Debt Resolve Inc., a provider of online consumer debt settlement services, has revealed that the company has closed a $7 million investment deal with a company that invests in the purchase and securitization of consumer and commercial debt, as well as launched a subprime mortgage collections service.
Debt Resolve has entered into a securities purchase agreement with Harmonie International LLC for the private placement of nearly three million shares of Debt Resolve's common stock, par value $.001 per share at a price of $2.36 per share, and a 10-year warrant to purchase up to 3.71 million shares of common stock, at an exercise price of $2.36 per share, resulting in aggregate gross cash proceeds to Debt Resolve of $7 million.
The transaction closed simultaneously with the execution of the Purchase Agreement, with Harmonie International initiating an international wire transfer process at such time with funding to be completed on or before April 17. On April 2, the American Stock Exchange approved for listing the shares of common stock issued in the private placement.
Harmonie International is a privately owned company that invests in the purchase and securitization of consumer and commercial debt. The company maintains its principal office in Detroit and has European offices in Marbella, Spain, and London.
Another highlight of Debt Resolve's results for the year ending Dec. 31, 2007 included the launched of DR Default for subprime mortgage collections.
Harmonie International was introduced to Debt Resolve by The Resolution Group Inc. This private placement satisfies the obligation of TRG as set forth in an agreement dated Dec. 4, 2007, to provide at least $4.5 million in funding. TRG will continue to work with Debt Resolve in a joint venture for mortgage collections, a note modification program and the referral of clients in the banking and health care industries.
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