Realty Finance Corporation (OTCPK:RTYF.Z) acquired ClearVue Management, Inc. for $8.9 million.
August 05, 2013 at 12:00 am EDT
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Realty Finance Corporation (OTCPK:RTYF.Z) acquired ClearVue Management, Inc. for $8.9 million on August 5, 2013. Under the terms of the agreement, total 6.55 million shares of common stock, warrants to purchase up to an aggregate of 3.76 million shares of Realty Finance's common stock, $2.935 million of new 8% perpetual preferred stock and a new 4% $5 million non-recourse note of Realty Finance Corporation were issued. ClearVue Management, Inc. reported total revenues of $2.25 million, total assets of $8.63 million, operating loss of $0.59 million, Net loss of $0.49 million and total common equity of $7.52 million for the period ending December 31, 2012. Post transaction, Realty Finance Corporation will change its name to CV Holding Inc. Matt Regan, Dennis Regan, David Haddad and Jonny Harmer, who comprised ClearVue Management's senior management, will become Executive Vice Presidents of Realty Finance Corporation.
Ricardo Koenigsberger and Kenneth Witkin, who have been serving as Realty Finance Corporation Directors, will continue to serve in such capacity and will become Co-Chief Executive Officers. Jonny Harmer, ClearVue Management's Chief Financial Officer will become Chief Financial Officer of Realty Finance Corporation. Realty Finance Corporation new Board of Directors will initially include four Directors: David Haddad, Ricardo Koenigsberger, Matt Regan and Kenneth Witkin. Realty Finance Corporation will move its headquarters to Newport Beach, CA. Realty Finance Corporation Board of Directors unanimously approved the merger. Raj Tanden of Buchalter Nemer acted as legal advisor to Realty Finance.
Realty Finance Corporation (OTCPK:RTYF.Z) completed the acquisition of ClearVue Management, Inc. on August 5, 2013.
CV Holdings, Inc. is a holding company for several finance-related businesses. The Company, through its subsidiaries, holds various types of investment assets, including loans receivable, finance leases and commercial Collateralized Debt Obligations (CDO) interests. The Company owns and operates a commercial real estate lending business through CV Capital Funding, LLC (CVCF); small ticket finance and leasing business through Centra Funding, LLC (Centra); a venture equipment finance and leasing business through VenSource Management, LLC (VenSource); and a residential nonperforming loan (NPL) servicer and asset manager through LongVue Mortgage Capital, Inc. (LongVue). The various operating businesses are owned by the Companyâs taxable real estate investment trust (REIT) subsidiary, RFC TRS, Inc. (TRS), while the portfolio investments are held through other subsidiaries outside TRS. The Companyâs primary businesses include CVCF, Centra and VenSource.