Franklin Credit Management Corporation announced a private placement of 2,050,000 non-transferrable restricted series A convertible preferred shares at a price of $2 per share with existing investor, Thomas J. Axon, Chairman and President of the company for gross proceeds of $4,100,000 on September 30, 2013. Each preferred share carries a cumulative dividend rate of 7% per annum. The company will issue securities pursuant to exemption provided under Regulation D. The variable conversion price will be equal to the aggregate capital contributions made by the investor to the company, plus any accrued and unpaid dividends, divided by the greater of the closing price of the common stock of the company on the day immediately prior to the date of conversion or if such day is not during a window period during which the investor would otherwise be permitted to purchase company securities, under the company's insider trading policy then in effect, then the first business day of the next window period that would be applicable to the investor, or $0.41 per share. The transaction will remain open for more than one year. The agreement grants the investor an irrevocable and exclusive option to exchange 2,050,000 shares of preferred stock for any right, title and interest of the company in two specifically designated real estate properties owned by the company located in the borough of Manhattan in the city of New York, exercisable on or after the date on which the company has received a total of $4,100,000 in cash capital contributions from the investor.

On October 11, 2013, the company issued 250,000 preferred shares for proceeds of $500,000 to the investor in its first tranche closing. The investor may purchase a minimum of 100,000 preferred shares per month for an aggregate minimum monthly purchase of $200,000 in cash in non-refundable funds, monthly on the 20th of each month. The investor shall have no right to withdraw, redeem or exchange the preferred shares, or receive a liquidation preference on account of the shares.

On October 18, 2013, the company announced that it has received $200,000 in its second tranche closing. The company issued 100,000 shares in this tranche. The company has received $700,000 in the transaction.

On November 19, 2013, the company announced that it has received $200,000 in its third tranche closing. The company issued 100,000 shares in this tranche. The company has received $900,000 in the transaction.

On December 19, 2013, the company announced that it has received $500,000 in its fourth tranche closing. The company issued 250,000 shares in this tranche. The company has received $1,400,000 in the transaction.

On January 17, 2014, the company announced that it has received $200,000 in its fifth tranche closing. The company issued 100,000 shares in this tranche. The company has received $1,600,000 in the transaction.

On February 20, 2014, the company announced that received $200,000 in its sixth tranche closing. The company issued 100,000 shares in this tranche. The company has received $1,800,000 in the transaction.

On March 20, 2014, the company announced that it has received $200,000 in its seventh tranche closing. The company issued 100,000 shares in this tranche. The company has received $2,000,000 in the transaction.

On April 18, 2014, the company announced that it has received $200,000 in its eighth tranche closing. The company issued 100,000 shares in this tranche. The company has received $2,200,000 in the transaction.

On May 19, 2014, the company announced that it has issued 100,000 shares for proceeds of $200,000 in its ninth tranche closing. The company has received $2,400,000 in the transaction.

On June 20, 2014, the company announced that it has issued 100,000 shares for proceeds of $200,000 in its tenth tranche closing. The company has received $2,600,000 in the transaction.

On July 18, 2014, the company announced that it has issued 100,000 shares for proceeds of $200,000 in its eleventh tranche closing. The company has received $2,800,000 in the transaction.

On July 23, 2014, the company announced that it has issued 100,000 shares for proceeds of $200,000 in its twelfth tranche closing. The company has received $3,000,000 in the transaction.

On August 12, 2014, the company announced that it has issued 100,000 shares for proceeds of $200,000 in its thirteenth tranche closing. The company has issued 1,600,000 preferred shares till date as part of the transaction.

On August 19, 2014, Franklin Credit Management Corporation closed the transaction. The company issued 450,000 shares of preferred stock for an aggregate price of $900,000 to existing investor Thomas J. Axonin in its final tranche close. The company issued a total of 2,050,000 shares of preferred stock.