Velocity Asset Management Inc - Current report filing (8-K)
27 May 2008 - 8:01PM
Edgar (US Regulatory)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) May 23, 2008 (May 19,
2008)
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VELOCITY ASSET MANAGEMENT, INC.
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(Exact
name of registrant as specified in Charter)
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Delaware
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000-61570
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65-0008442
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(State
of other Jurisdiction of
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(Commission
file no.)
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(IRS
employer identification no.)
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incorporation)
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1800
Route 34 North, Building 4, Suite 404B
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Wall,
NJ
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07719
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrants telephone number, including area code
(201-760-6306)
N/A
(Former Name or
Former Address, if Changed Since Last Report)
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2. below:
o
Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item
1.01. Entry into a Material Definitive Agreement
On May 19, 2008, Velocity Asset Management, Inc. (the
Company) consummated its second and final closing (the Closing) of its
private placement offering (the Offering) of Units comprised of shares of
common stock (the Shares) and warrants to purchase shares of common stock
(the Warrants, together with the Shares, the Securities) to accredited
investors (Investors). The Securities are being offered and sold pursuant to
an exemption from registration under Section 4(2) of the Securities Act of
1933, as amended (the Securities Act). Together with the first closing, the
Registrant sold an aggregate of 945,166 Shares, 800,003 of which were at a
purchase price of $.90 per Share and 145,163 of which were at a purchase price of
$.93 per Share and delivered three-year Warrants to purchase an aggregate of 236,293 shares of
the Companys common stock. The Company intends to use the net proceeds from
the Offering primarily for the purchase of portfolios of unsecured consumer
receivables and for general corporate purposes, including working capital.
The Warrants entitle the holders to purchase shares of
the Companys common stock reserved for issuance thereunder (the Warrant
Shares) for a period of three years from the date of issuance. 200,001 of the
Warrants have an exercise price of $1.13 per share and 36,292 of the Warrants
have an exercise price of $1.16 per share, or the holders may receive shares
pursuant to a cashless exercise provision. The Warrants contain certain
anti-dilution rights on terms specified in the Warrants.
The investors of this Offering are not entitled to any
registration rights with respect to the Securities.
The Securities have not been registered under the
Securities Act of 1933, as amended (the Securities Act), or any state
securities laws, and are being offered and sold only in the United States to
accredited investors (as defined in Rule 501(a) of the Securities Act)
pursuant to an exemption from registration under Section 4(2) of the Securities
Act. Neither the Securities and Exchange Commission (the SEC) nor any state
securities commission or regulatory body has approved or disapproved the
securities. Any representation to the contrary is a criminal offense.
Item
3.02. Unregistered Sales of Equity Securities
See Item 1.01 of this Current Report on Form 8-K,
which Item is incorporated herein by this reference, for a description of the
terms of the financing transaction that included the issuance of the
Securities.
The Company received aggregate net proceeds of
$725,152 from the placement, after payment of offering expenses of
approximately $70,000 and commissions of approximately $59,850. The Company
retained, Anderson & Strudwick, a registered FINRA broker dealer to act as placement agent. In
addition, the placement agent will receive 94,516 warrants to acquire
shares of the Companys common stock for a period of three years, 80,000 of
which at an exercise price of $1.13 per share and 14,516 of which at an
exercise price of $1.16 per share.
Item 9.01.
Financial Statements and Exhibits.
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Exhibit No.
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Description
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4.1
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Form of Warrant*
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2
* Incorporated by reference to Registrants Current
Report on Form 8-K filed with the Securities and Exchange Commission on May 12,
2008
This Current Report on Form 8-K may contain, among
other things, certain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, without
limitation, (i) statements with respect to the Companys plans, objectives,
expectations and intentions; and (ii) other statements identified by words such
as may, could, would, should, believes, expects, anticipates,
estimates, intends, plans or similar expressions. These statements are
based upon the current beliefs and expectations of the Companys management and
are subject to significant risks and uncertainties. Actual results may differ
from those set forth in the forward-looking statements. These forward-looking
statements involve certain risks and uncertainties that are subject to change
based on various factors (many of which are beyond the Companys control).
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this Report to be signed on its behalf by the undersigned hereunto
duly authorized.
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VELOCITY ASSET MANAGEMENT, INC.
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/s/ JAMES MASTRIANI
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James Mastriani
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Chief Financial Officer
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Dated:
May 23, 2008
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