Mill City Ventures III Extends Loan Agreement with Mustang Funding

Mill City Ventures III, Ltd. (NASDAQ: MCVT) recently announced the extension of its loan agreement with Mustang Funding, LLC. The company entered into an Amendment No. 5 to Fourth Short-Term Loan Agreement and Fourth Short-Term Promissory Note on January 22, 2025, with an effective date of January 21, 2025.

Under the terms of the agreement, the maturity date of Mill City’s loan to Mustang Funding has been extended to March 28, 2027. Additionally, the per annum rate of interest has been increased to 20%. Mustang Funding is obligated to continue making monthly cash interest payments at the pre-amendment rate of 15% per annum and to pay the additional 5% per annum interest upon maturity.

The decision to enter into this amendment was part of Mill City’s negotiations with both Mustang Funding and its senior creditor. Specifically, the company sought a security agreement with Mustang Funding to secure its obligations under the loan agreement and promissory note. Additionally, an amended and restated subordination and intercreditor agreement with the senior creditor is being finalized.

As of the report date, the parties are in the process of executing and delivering signatures for the above-mentioned agreements. Joseph A. Geraci, II, Chief Financial Officer of Mill City Ventures III, signed the report on behalf of the company on January 28, 2025.

This extension of the loan agreement underscores Mill City Ventures III’s commitment to managing its financial obligations effectively and ensuring the continued growth and stability of its operations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Mill City Ventures III’s 8K filing here.

Mill City Ventures III Company Profile

Mill City Ventures III, Ltd. is a principal investment firm specializing investments in debt and equity securities of public and private companies to fund their operations whether its start-up, acquisition, or growth. It primarily focuses on investing in, lending to, and making managerial assistance available to privately held and publicly traded companies.