Altisource Asset Management Corporation Announces Settlement with Series A Preferred Stockholders
07 Janvier 2022 - 3:51PM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE American: AAMC) today announced that it had entered into a
settlement agreement (the “Settlement Agreement”) with two
institutional investors related to the Company’s Series A
Convertible Preferred Stock (the “Series A Shares”). Under the
Settlement Agreement, the Company has agreed to pay the
institutional investors approximately $665 thousand in cash in
exchange for $5.79 million of liquidation preference of the
Company’s Series A Shares (11.5 cents per dollar liquidation amount
of the Series A Shares). As a result of this settlement, the
Company estimates that it will recognize a gain of approximately
$5.1 million to additional paid in capital in the first quarter of
2022. The resulting outstanding remaining liquidation preference of
Series A Shares will be approximately $144.2 million, which
represents the entire Luxor Funds position
Mr. Thomas K. McCarthy, Interim Chief Executive
Officer, stated, “The Company is pleased to announce another
settlement related to our Series A Preferred Stock with
institutional investors under similar financial terms as our
previous agreements with Putnam and Wellington. The Company has now
settled with all holders of our Series A Preferred Stock other than
the Luxor Funds. This third settlement agreement reinforces the
Company’s position in its ongoing litigation against the Luxor
Funds that has been previously disclosed in our public
filings.”
About AAMC
AAMC has historically been an asset management
company that provides portfolio management and corporate governance
services to investment vehicles but given the sale and
discontinuance of certain operations the Company is in the process
of repositioning itself. Additional information is available at
www.altisourceamc.com.
Forward-looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, regarding management’s beliefs, estimates,
projections, anticipations and assumptions with respect to, among
other things, the Company’s financial results, future operations,
business plans and investment strategies as well as industry and
market conditions. These statements may be identified by words such
as “anticipate,” “intend,” “expect,” “may,” “could,” “should,”
“would,” “plan,” “estimate,” “target,” “seek,” “believe” and other
expressions or words of similar meaning. We caution that
forward-looking statements are qualified by the existence of
certain risks and uncertainties that could cause actual results and
events to differ materially from what is contemplated by the
forward-looking statements. Factors that could cause our actual
results to differ materially from these forward-looking statements
may include, without limitation, our ability to implement new
businesses or, to the extent such businesses are developed, our
ability to make them successful or sustain the performance of any
such businesses; developments in the litigation regarding our
redemption obligations under the Certificate of Designations of our
Series A Convertible Preferred Stock; and other risks and
uncertainties detailed in the “Risk Factors” and other sections
described from time to time in the Company’s current and future
filings with the Securities and Exchange Commission. The foregoing
list of factors should not be construed as exhaustive.
The statements made in this press release are
current as of the date of this press release only. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements or any other information contained
herein, whether as a result of new information, future events or
otherwise.
FOR FURTHER INFORMATION CONTACT: |
Investor Relations |
T: +1-704-275-9113 |
E: IR@AltisourceAMC.com |
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