NEW YORK, March 23, 2012 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN)
On March 21, 2012, SeekingAlpha.com opined that the interest rate paid by Manhattan Bridge Capital to its CEO is too high. SeekingAlpha voices this opinion even though the total interest paid in 2011 was only $455.
Manhattan Bridge is in the business of short term financing to real estate investors in the New York Metropolitan area. The Company annually lends approximately $8 million of its own money, plus additional funds that it borrows from individual investors. It regularly seeks additional loans in order to maximize growth. Its CEO facilitates these efforts by offering his personal guarantee in most cases. To further increase leverage and support its growth, the Company is seeking a substantial line of credit from a commercial bank, a line of credit on which Mr. Ran will offer his personal guarantee.
From time to time, the Company needs immediate cash for very short periods of time in order to close deals. Mr. Ran holds a few hundred thousand dollars in his personal checking account, yielding almost nothing, in order to provide funds to the Company and allow it to close these deals. The total dollar amount of interest that was paid to Mr. Ran by the Company during 2011 and 2010 were only $455 and $400, respectively. In addition, the money advanced by Mr. Ran was unsecured and required no additional fees whatsoever (no legal fees, no recording fees, no payoff fees, etc.).
However, in order to avoid any appearance of conflict, Mr. Ran will reduce the interest he charges the Company to 6%, per annum, effective immediately.
This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are typically identified by the words "believe," "expect," "intend," "estimate" and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial conditions and results of operations and our business and growth strategies. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i) the successful integration of new businesses that we may acquire; (ii) the success of new operations which we have commenced and of our new business strategy; (iii) our limited operating history in our new business; (iv) potential fluctuations in our quarterly operating results; and (v) challenges facing us relating to our growth. The accompanying information contained in this report, including the information set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations", identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.
CONTACT: Assaf Ran, CEO (516) 444-3400
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here