DALLAS, Oct. 30 /PRNewswire-FirstCall/ -- Mortgage Assistance Center Corporation (BULLETIN BOARD: MTGC) (the "Company"), headquartered in Dallas, announced today the signing of a funding agreement with a large Dallas - based investment fund that provides for up to $50 million in funding. The funding will be used to acquire pools of distressed residential real estate and residential mortgages through joint ventures formed by the investment fund and the Company. The Company will enter into a servicing agreement pursuant to which the Company will service each pool purchased. An initial joint venture has been formed and has funded and acquired a pool of residential assets for approximately $4.3 million. The Company has agreed to grant to the investment fund a warrant to purchase up to one-third of the Company's Common Stock, which warrant will vest in increments as the investment fund provides funds pursuant to the funding agreement.
Ron Johnson, President and CEO of the Company, said, "Our new executive management team is extremely pleased to have established a major funding facility with a premier investment fund, especially after having completed a major restructuring of the Company and its personnel. The Company is now financially positioned to take great advantage of the many opportunities in the distressed sub-prime market. We look forward to a long and mutually rewarding joint venture relationship with our new investment partner."
About Mortgage Assistance Center Corporation
Mortgage Assistance Center Corporation founded in 2003, is a Dallas based financial services company that is focused on the acquisition, workout and resale of distressed real estate assets in the secondary market throughout the United States.
Forward Looking Statements
This report contains forward-looking information. Forward-looking statements include statements concerning plans, objectives, goals, strategies, possible future events or performance and underlying assumptions, which are other than statements of historical facts. The Company believes its projections have a reasonable basis, but there can be no assurance that management's projections will be achieved. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, limited operating history, historical operating losses and the uncertainty of the Company's profitability in the future, the need to raise additional capital to sustain operations and implement its future business plan, and other factors that may be beyond the Company's control. These factors include changes in regulations or legislation, adverse determination with respect to litigation or other claims, ability to recruit and retain employees, availability of mortgage note portfolios at acceptable prices, and increases in operating costs. The Company has no obligation to publicly update or revise these forward-looking statements to reflect the occurrence of future events or circumstances.
