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EMGCQ BK PLAN effective. All shares cancelled.
https://otce.finra.org/otce/dailyList?viewType=Deletions
EMGC changed to EMGCQ, bankruptcy. PPS closed at .32.
https://otce.finra.org/otce/dailyList?viewType=Symbol%2FName%20Changes
Book value up to .34/share.
9 policies "matured" in Q.
7 more policies matured through first 20 days of April.
Compares to 25 total in 2019 with 7 in 4th Q 2019.
Maturities are accelerating. High exposure to NY, CA, and FL.
I fully agree. Once it blows past .40 this time, it's going to scream past .50, IMO.
This board deserves to be a lot busier.
Did you all see that earnings report and the 350k share bid right now??
568 life insurance policies that have a face value of approximately $2.7 billion we see a significant opportunity to generate long-term value for shareholders
Not familiar with this type of biz. What is this worth per share?
Emergent Capital, Inc. Announces Third Quarter 2019 Results (10/09/19)
Company consummates transaction with a strong, like-minded partner to reduce outstanding debt and exit bankruptcy
Boca Raton, Fla., October 9, 2019 – Emergent Capital, Inc. (OTCQX: EMGC) ("Emergent" or the "Company"), today announced its financial results for the three months and nine months ended August 31, 2019.
Management Commentary
"During the third quarter, we closed a transformative transaction that provided Emergent with the necessary financing to exit a restrictive and unsustainable credit facility with a difficult lender that obstructed our ability to realize the value of our significant portfolio of life settlement policies and endangered our ability to continue to operate," said Pat Curry, Chairman and Chief Executive Officer. "The drastic measures we took to protect our assets were necessary, and as a result of our efforts, we have secured a strong, like-minded partner, significantly reduced our debt and emerged in a better position to realize value from our portfolio of policies by being able to finally manage and optimize the portfolio itself."
"With a continuing ownership interest in a well-seasoned portfolio of 568 life insurance policies that have a face value of approximately $2.7 billion we see a significant opportunity to generate long-term value for shareholders," Curry added. "We are aggressively exploring cost cutting initiatives to further reduce our costs and expenses to maximize returns. As part of this we will leverage contracted distributions from our lender that provide consistent cash flow to Emergent to offset unpredictable and inherently lumpy distributions from maturing policies."
Curry concluded, "The strong performance of our portfolio has been overshadowed by the challenges and impediments put forth by our former lender. With a new partner in place, these issues are now behind us and Emergent is free of distraction to focus on maximizing value for all shareholders."
Notice of Financial Reporting Changes
The Board of Directors changed the Company's fiscal year end from December 31 to November 30. As a result, the reported third quarter covers the period from June 1, 2019 to August 31, 2019. To aid investors, the results of the third quarter of 2019 are being presented to the directly comparable period last year, but are not comparable to the results previously filed with the SEC in its Quarterly Report on Form 10-Q on November 16, 2018, for the third quarter of 2018 which covers July 1, 2018 to September 30, 2018.
Given the Chapter 11 case of Lamington Road Designated Activity Company ("Lamington"), Lamington and its subsidiaries' (White Eagle Asset Portfolio, LP ("White Eagle"), White Eagle General Partner, LLC ("WEGP") and Lamington Road Bermuda Limited) results were excluded from the Company’s consolidated results from December 1, 2018 to August 16, 2019 therefore, our 2019 results are not comparable with 2018. Subsequent to the quarter end, the Bankruptcy Court entered an order and a final decree closing the White Eagle Chapter 11 Case. The Lamington and WEGP case were not yet dismissed as of the date of this earnings release. However, management took the position that given that all third-party claims had been satisfied in the case, consolidation of Lamington and WEGP as of August 17, 2019 was appropriate.
Third Quarter 2019 Highlights
On August 16, 2019, Emergent closed a transaction with Palomino JV, LP ("Palomino"), an affiliate of Jade Mountain Partners ("Jade Mountain"), relating to the portfolio of life settlement policies owned by White Eagle, and White Eagle exited its former credit facility with an affiliate of Beal Bank.
This transaction allowed Emergent to reduce its outstanding debt, and aligned the Company with Jade Mountain, a strong, like-minded partner. As part of this transaction, White Eagle sold 72.5% of its limited partnership interests to Palomino for approximately $366.2 million and White Eagle General Partner (the "Withdrawing General Partner") sold to an affiliate of Jade Mountain all of its general partnership interests for $8.0 million
(collectively, the "WE Investment") and Lamington retained 27.5% of White Eagle’s limited partnership interests.
This transaction was critical to ensure the viability of Emergent and to maintain its investment in its life settlement portfolio.
In connection with the WE Investment, the Limited Partnership Agreement of White Eagle was amended and restated (the "A&R LPA") to provide for the issuance of the Class A, B and D limited partnership interests, and for funding of an "Advance Facility" to maintain reserves sufficient to fund premiums, certain operating expenses of White Eagle and certain minimum payments to Lamington as the holder of the Class B interests. Pursuant to the A&R LPA, holders of Class A interests are entitled to receive distributions on the amounts paid or contributed by them in relation to the WE Investment and funding of the Advance Facility after payment of premiums on the portfolio policies and other fees and expenses. The A&R LPA provides generally that holders of the Class A and Class B Interests receive distributions of proceeds of the assets of White Eagle based on their 72.5% and 27.5% ownership, respectively, after certain expenses and reserves are funded (including such minimum payments to Lamington totaling approximately $8.0 million per year for the first three (3) years and $4.0 million for the subsequent seven (7) years), provided that commencing after year three (3), such minimum payments will be utilized to repay the Class D Return of $8.0 million, which was advanced at closing, plus the greater of $2.0 million or 11% per annum on such $8.0 million to the extent necessary to fully repay such Class D Return. The minimum payments to the Company will occur regardless of maturities with payments through the premium/expense reserve account when there are no maturity proceeds available for distributions as described below). However, the A&R LPA also provides that all payments to holders of the Class B interests (other than such minimum payments to Lamington during the first eight (8) years following the Closing Date) are fully subordinated to payments in respect of the minimum returns to holders of the Class A and Class D interests (including repayment of all amounts advanced in respect of the Advance Facility) and to any indemnification payments, if any, due to such holders and related indemnified persons pursuant to the indemnities afforded them in and in relation to the A&R LPA, Subscription Agreement, Master Termination Agreement and related documents.
On August 28, 2019, the Company paid off the $1.2 million outstanding principal on its outstanding 8.5% Convertible Notes due 2019. The Convertible Notes matured on February 15, 2019. Upon the payoff, such convertible notes were extinguished.
As of the filing date, we had approximately $26.8 million of cash and cash equivalents inclusive of certificates of deposit of $511,000.
Consolidated Results
Income from continuing operations for the three months ended August 31, 2019 (the "2019 Period") was $86.9 million compared to $5.6 million for the three months ended August 31, 2018 (the "2018 Period") and was significantly impacted by the deconsolidation of Lamington and related subsidiaries which resulted in approximately $96.7 million in gain, the amount is reflected in current earnings as change in fair value of investment in deconsolidated subsidiaries. The amount is associated with gains incurred by Lamington for the period up to August 16, 2019 in considering the proceeds received through the transactions for the subscription agreement, the actual payoff of the White Eagle Revolving Credit Facility and all other third party claims.
Income for the 2018 Period mainly includes net gain on maturity of $7.1 million which is attributable to three policies maturity. There were no maturities for the consolidated entities for the 2019 Period.
Total expense from continuing operations for the 2019 Period was approximately $6.7 million compared to approximately $4.8 million for the 2018 Period. Expense includes interest expense of approximately $2.8 million for the 2019 Period and includes approximately $1.3 million on the 5% Convertible Notes, $1.5 million on the 8.5% Senior Secured Notes and $22,000 on the 8.5% Convertible Notes.
Deconsolidated Subsidiaries Results
Total income for the deconsolidated subsidiaries was $50.0 million and was comprised, of gain on sale of life settlement of approximately $21.3 million associated with the sale of the assets in White Eagle. Our deconsolidated subsidiaries had six life insurance policies with face amounts totaling $31.8 million in maturity, the net gain of which was $20.0 million and is recorded as a change in fair value of life settlements in the deconsolidated statements of operations for the quarter ended August 31, 2019. Proceeds from maturities totaling $60.2 million were received during the quarter ended August 31, 2019, offset by a change in fair value of life settlements loss of approximately $13.0 million.
On August 16, 2019, Lamington's capital contribution to White Eagle comprised the fair value of the life settlement assets assigned by the purchaser. The Company performed a fair value calculation to include various factors impacting the waterfall distribution as dictated by the subscription agreement, including but not limited to amounts advanced for the Class D Shares, the funding of the premium reserves on the Company's behalf and the expected return by the Class A Shares which is 11%. The Company determined that the fair value was approximately $138.2 million which resulted in a change in fair value gain of approximately $15.4 million at August 16, 2019.
Our deconsolidated subsidiaries expense was significantly impacted by interest expense of $23.3 million due to the repayment of the White Eagle Revolving Credit Facility, loss on extinguishment of debt of approximately $7.4 million associated with the early repayment of the White Eagle Revolving Credit Facility, reorganization cost of $4.8 million, legal fees of $158,000 and professional fees of $659,000, offset by change in fair value gain for the White Eagle Revolving Credit Facility of approximately $26.6 million.
Nine Months Ended August 31, 2019
Consolidated Results
Total income from continuing operations for the nine months ended August 31, 2019 was $34.1 million compared to $19.7 million for the same period last year. Income was significantly impacted by the deconsolidation of Lamington and related subsidiaries which resulted in approximately $37.9 million in gain, the amount is reflected in current earnings as change in fair value of investment in deconsolidated subsidiaries.
Income for 2018 mainly includes net gain on maturity of approximately $35.1 million which is attributable to the maturity of 15 policies. There were no maturities for the consolidated entities for the 2019 Period.
Total expenses from continuing operations for the nine months ended August 31, 2019 were approximately $14.0 million compared to approximately $24.2 million for the same period last year. Expense for the nine months ended August 31, 2019 was impacted by interest expense of approximately $8.4 million including $3.8 million on the 5% Convertible Notes, $4.5 million on the 8.5% Senior Secured Notes and $93,000 on the 8.5% Convertible Notes.
Total expenses from continuing operations for the nine months ended August 31, 2018 were mainly comprised of interest expense of $23.4 million, including interest on the White Eagle Revolving Credit Facility of $16.7 million, $3.7 million on the 5% Convertible Notes, $2.5 million on the 8.5% Senior Secured Notes and $138,000 on the 8.5% Convertible Notes; offset by a change in the fair value gain for the White Eagle Revolving Credit Facility of $11.7 million.
Deconsolidated Subsidiaries Results
Total income for the deconsolidated subsidiaries for nine months ended August 31, 2019 was $20.6 million and mainly comprised change in fair value of life settlements loss of approximately $16.8 million. Our deconsolidated subsidiaries had 18 life insurance policies with face amounts totaling $100.4 million matured. The net gain of these maturities was $70.3 million and is recorded as a change in fair value of life settlements in the deconsolidated statements of operations for nine months ended August 31, 2019. Proceeds from maturities totaling $92.5 million were received during the nine months ended August 31, 2019.
Our deconsolidated subsidiaries expense was significantly impacted by change in fair value of the White Eagle Revolving Credit Facility of approximately $17.1 million. Other items impacting expenses were interest expense of $28.3 million, reorganization cost of $14.0 million, loss on extinguishment of debt of approximately $7.4 million associated with the early repayment of the White Eagle Revolving Credit Facility, administrative services fees of $2.8 million, legal fees of $890,000 and professional fees of 1.5 million.
The Company reported net income from continuing operations of $16.9 million, or $0.10 per diluted share for the nine months ended August 31, 2019, compared to a net loss from continuing operations of $4.3 million, or $(0.03) per diluted share for the same period last year.
At August 31, 2019, we had approximately $8.8 million of cash and cash equivalents and certificates of deposit of $508,000. Of this amount, approximately $8.8 million was available to pay premiums on two policies for which such expenses will approximate $45,000 in 2019 and other overhead expenses.. The Company had 158,051,803 shares of common stock outstanding, treasury shares of 608,000 and an undiluted book value of $0.28 per share at August 31, 2019.
Life Settlements Portfolio Highlights
As of August 31, 2019, we owned 2 policies with an estimated fair value of $1.3 million compared to 2 policies with an estimated fair value of $1.2 million at November 30, 2018.The weighted average discount rate was 14.92% at each of August 31, 2019 and November 30, 2018.
Of these two policies owned as of August 31, 2019, all were previously premium financed and are valued using discount rates that range from 13.25% to 15.25%.
Investment in Limited Partnership
On August 16, 2019, Lamington's capital contribution to White Eagle was an estimated fair value of approximately $138.9 million. The Company performed a valuation at August 31, 2019 resulting in a value of approximately $132.3 million.
During the three months and nine months ended August 31, 2019, approximately $8.2 million was distributed from the premium/expense reserve account to pay premiums and expenses with the balance of approximately $21.8 million remaining in the account at August 31, 2019.
Approximately $333,000 was due for distribution to the Company to cover the period from August 17, 2019 to August 31, 2019 pursuant to the minimum distributions described above and the amount was received subsequent to the quarter end.
About Emergent Capital, Inc.
Emergent (OTCQX: EMGC) is a specialty finance company that invests in life settlements. More information about Emergent can be found at www.emergentcapital.com.
https://www.sec.gov/Archives/edgar/data/1494448/000149444819000066/q3-2019earningsrelease.htm
Emergent Capital Redeems Unsecured Convertible Notes (8/28/19)
On August 28, 2019, Emergent Capital, Inc. (the "Company") paid off the outstanding principal and accrued interest on its 8.5% senior unsecured convertible notes due 2019 (the “8.5% Convertible Notes”), consisting of $1,194,000.00 in principal, $105,154.92 in accrued and unpaid interest and $38,062.43 in administrative fees and expenses. The 8.5% Convertible Notes matured on February 15, 2019. Upon the payoff described herein, the 8.5% Convertible Notes were extinguished.
https://www.sec.gov/Archives/edgar/data/1494448/000149444819000060/emg8-kpayoffofoldconvertib.htm
Emergent Capital Closes New Arrangement (8/19/19)
BOCA RATON, FL / ACCESSWIRE / August 19, 2019 / Emergent Capital, Inc. (OTCQX:EMGC) ("Emergent" or the "Company"), today announced that on August 16, 2019, Emergent and certain of its subsidiaries, including White Eagle Asset Portfolio, LP (“White Eagle”), closed a financing transaction pursuant to which it will partner with Palomino JV, LP (“Palomino”) in the ownership of its portfolio of life settlement policies and will exit its former credit facility with Beal Bank.
On August 16, 2019, Emergent and certain of its subsidiaries entered into a subscription agreement with Palomino, in connection with the previously announced commitment letter with Jade Mountain Partners pursuant to which White Eagle will sell to Palomino 72.5% of its limited partnership interests.
Pat Curry, Emergent Capital’s Chairman and Chief Executive Officer, commented, “This agreement enables Emergent’s subsidiaries to exit bankruptcy and pay off the Beal Bank facility, moving forward with a sustainable capital structure, a strong, like-minded financing partner in Jade Mountain and a small amount of debt as opposed to the mountain of debt that we inherited.”
The proceeds of the Investment will be used primarily to pay off and terminate White Eagle’s revolving credit facility with an affiliate of Beal Bank (the “Credit Facility”). The termination of the Credit Facility is in accordance with the Plan of Reorganization for Lamington Road Designated Activity Company (“Lamington”), White Eagle General Partner, LLC (“WEGP”) and White Eagle approved by the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) with respect to the previously announced voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code of Lamington, WEGP and White Eagle (the “Chapter 11 Cases”).
The investment by Palomino was consummated, and the Credit Facility was paid off in full and terminated, on August 16, 2019. Immediately upon closing, there were cash and current receivables of approximately $28 million that were distributed from the subsidiaries up to Emergent.
Additional information related to this matter and others referenced in this press release, can be found on a Form 8-K which will be filed with the Securities and Exchange Commission
About Emergent Capital, Inc.
Emergent (OTCQX:EMGC) is a specialty finance company that invests in life settlements. More information about Emergent can be found at www.emergentcapital.com.
https://www.accesswire.com/556699/Emergent-Capital-Closes-New-Arrangement
EMGC here we go..what a beast from 8c!!!
EMGC i'm long here and patience is paying off...lets show the QPR> folks what a real stock in the same space can do...I have a 31c target on this!!
Volume and price increase over the past couple of days may be the result of a VIC article.
I not a member, but a source told me one was posted.
Emergent Capital Announces Financing Commitment for Bankruptcy Exit (7/24/19)
BOCA RATON, FL / ACCESSWIRE / July 24, 2019 / Emergent Capital, Inc. (OTCQX: EMGC) ("Emergent" or the "Company"), today announced that on July 18, 2019, Emergent and its subsidiaries, including White Eagle Asset Portfolio, LP, entered into a binding commitment with Jade Mountain Partners in connection with the Plan of Reorganization of Emergent’s subsidiaries previously approved by the United States Bankruptcy Court for the District of Delaware. The commitment letter provides for a transaction in which Jade Mountain and/or certain of its affiliates and/or certain investors will acquire 72.5% of the equity interests of White Eagle, the owner of substantially all of the Company’s portfolio of life insurance policies, in exchange for $384,250,000 as may be adjusted in accordance with the final documentation. The proceeds of the transaction will be used to pay off White Eagle’s revolving credit facility with an affiliate of Beal Bank.
Pat Curry, Emergent Capital’s Chairman and Chief Executive Officer, commented, “We are pleased to have reached a commitment with Jade Mountain that will allow us to exit bankruptcy reorganization and pay off the Beal Bank facility while incurring very little new debt moving forward with a strong, like-minded partner in Jade Mountain.”
The Commitment Letter and its terms and the transactions contemplated thereby were approved by the Bankruptcy Court on July 22, 2019. The parties intend to consummate the transaction as soon as practicable, subject to completion of definitive documents.
Additional information related to this matter and others referenced in this press release, can be found on a Form 8-K which is being filed with the Securities and Exchange Commission.
About Emergent Capital, Inc.
Emergent (OTCQX: EMGC) is a specialty finance company that invests in life settlements. More information about Emergent can be found at www.emergentcapital.com.
https://www.accesswire.com/553308/Emergent-Capital-Announces-Financing-Commitment-for-Bankruptcy-Exit
5
.20+ buyer, sell the company? What prx?
Capital raise on the horizon.
Order Confirming Debtors' Second Amended Joint Chapter 11 Plan of Reorganization (6/19/19)
Source: PACER [Docket 349]
Order Approving Disclosure Statement for Debtors' Amended Joint Chapter 11 Plan of Reorganization (6/05/19)
Equity is unimpaired so no vote required.
Confirmation Hearing scheduled for 6/19/19 at 11:00 at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware.
Object deadline is 6/17/19.
Source: PACER [Docket 318]
Order Pursuant to Sections 105(a) and 363(b) of the Bankruptcy Code and Bankruptcy Rule 9019 for Order Approving Settlement Between Debtor White Eagle Asset Portfolio, LP, Emergent Capital, Inc., and Lincoln Benefit Life Company (6/05/19)
Lincoln Benefit issued 55 life insurance policies that are presently owned by White Eagle. Lincoln Benefit and White Eagle (for which Security Intermediary is the record owner and beneficiary on behalf of White Eagle) are involved in six separate legal actions.
The pending death claims on three policies involve $39.1 million in aggregate death benefits.
Lincoln Benefit will pay $23.3 million. Securities Intermediary (care of White Eagle) will receive $21.3 million and Emergent will receive $2 million.
Source: PACER [Docket 314]
Deal To End $367M White Eagle Lender Fight Gets Court Nod (6/05/19)
By Vince Sullivan
Law360, Wilmington (June 5, 2019, 8:14 PM EDT) -- A Delaware bankruptcy judge approved a settlement Wednesday between life insurance investment firm White Eagle Asset Portfolio LP and its secured lender that will end a fight over $367 million in prepetition debt and allow the Chapter 11 case to move toward confirmation.
During a hearing in Wilmington, U.S. Bankruptcy Judge Kevin Gross overruled the objections of the U.S. Trustee's Office to approve the settlement, saying the watchdog’s arguments about the breadth of releases included in the settlement didn’t jibe with the facts of the case.
He said the dispute between White Eagle and lender LNV Corp. was central to the Chapter 11 case and the proposed plan of the debtors, and the resolution of the bitter fight was necessary to confirm the plan.
“Are the releases broad? Yes,” Judge Gross said. “The releases have to be broad here because of the bitterness of the parties and I think for that reason the releases are appropriate in this case.”
The fight broke out almost immediately after White Eagle filed for Chapter 11 protection in November, with LNV and its parent Beal Bank accusing the debtor of using the bankruptcy process to pay the expenses of its own non-debtor parent, Emergent Capital. White Eagle then alleged in an adversary suit that LNV used its clout as lender to drive White Eagle into bankruptcy so it could more easily take control of its assets.
The settlement allows LNV’s claims in the amount of $382.7 million and provides a timeline during which White Eagle can pay down that amount from the proceeds of some of the more than 500 life insurance policies in its portfolio. If LNV isn’t paid in full by Sept. 14, then White Eagle’s remaining assets will be liquidated pursuant to a sale process that must close before the end of 2019, according to court documents. The adversary suit filed by White Eagle will be dismissed as part of the deal.
The deal also includes mutual releases given by White Eagle, LNV and all of its professionals, employees and affiliates, as well as professionals and employees of those affiliates, among other categories of people and entities for any and all existing and future claims.
The U.S. Trustee’s Office opposed the scope of those releases, saying it was improper for people far removed from the dispute, such as former employers of non-debtor affiliates of White Eagle, to be forced to give releases of their potential claims without being given notice of the settlement terms.
“The motion gives zero notice that the debtor intends to have parties that are not signatories to the settlement give releases,” trustee representative Juliet Sarkessian told the court.
Judge Gross said the opposition was well-founded, but seemed to address theoretical concerns when there was a concrete resolution in hand.
“They’re mutual releases. Both sides are getting releases,” Judge Gross said. “There’s consideration going both ways and whether actions would be brought by employees against the lender parties or not, I think that is so unlikely as to almost be an academic issue. It just doesn’t have practical effect.”
The court also approved a $15 million debtor-in-possession loan from LNV as part of the settlement and an agreement that lender attorneys White & Case LLP will cap their expenses at $5 million through the end of June.
White Eagle entered Chapter 11 in November, reporting “substantial losses” and a nearly $150 million accumulated deficit. A hearing on confirmation of its Chapter 11 plan is scheduled for June 19 before Judge Gross, who approved the plan disclosure statement Wednesday.
White Eagle is represented by Richard M. Pachulski, Ira D. Kharasch, Maxim B. Litvak and Colin R. Robinson of Pachulski Stang Ziehl & Jones LLP.
LNV is represented by Thomas E. Lauria, Jesse L. Green, David M. Turetsky, Andrew T. Zatz, Jason N. Zakia, Kimberly A. Haviv and Samuel P. Hershey of White & Case LLP, and Jeffrey M. Schlerf and Carl D. Neff of Fox Rothschild LLP.
The U.S. Trustee's Office is represented by Juliet Sarkessian.
The case is In re: White Eagle Asset Portfolio LP, case number 18-12808, in the U.S. Bankruptcy Court for the District of Delaware.
--Additional reporting by Jeff Montgomery and Rose Krebs. Editing by Amy Rowe.
https://www.law360.com/articles/1166159/deal-to-end-367m-white-eagle-lender-fight-gets-court-nod
Hearing rescheduled for 6/5/2019 at 9:30.
Motion of the Debtors Pursuant to Sections 105(a) and 363(b) of the Bankruptcy Code and Bankruptcy Rule 9019 for Order Approving Settlement Between Debtor White Eagle Asset Portfolio, LP, Emergent Capital, Inc., and Lincoln Benefit Life Company Filed by White Eagle Asset Portfolio, LP. (5/23/19)
Hearing scheduled for 6/5/2019 at 4:00.
Objections due by 6/3/2019.
Source: PACER [Docket 269]
White Eagle Asset Portfolio, LP
U.S. Bankruptcy Court
District of Delaware
Bankruptcy Petition #: 18-12808
Associated Cases
18-12614-KG White Eagle General Partner, LLC
18-12615-KG Lamington Road Designated Activity Company
19-50096-KG Emergent Capital, Inc. et al v. LNV Corporation et al
EMGC the monster is ready to be unleashed
Thanks. I read that last night.
So, maybe this means a comeback.
Thanks. This was NYSE.
That sparked my interest. The life insurance biz is a viable business. There must be some smart people running this, since this was NYSE and in the dollars at one time. And, they have a ton of institutions who previously invested here.
I wonder if there will be any follow through tomorrow and next week. This may have just been some shorts covering. I bought today at .21,.22 and .228. If you have anything, good or bad, that you can share, that would be great.
vol has increased dramatically over the past few days & it's not IHUBBERS .. have to think something big is coming .. watched it yesterday & there were some pretty decent slaps .. few years back this traded in the dollars .. maybe strong news coming & heading back there .. we shall see
Anyone still following this?
I bought in today, at the HOD, but had to conclude my DD first before I bought. The settlement of those lawsuits is a big deal, allowing the company to seek additional partners. The ownership by institutions is great. The insiders have been buying. The net loss has increased. Will continue to search.
EMGC locked and loaded...watch the magic!!
The Company reported net income from continuing operations of $4.2 million, or $0.03 per diluted share for the three month period ended September 30, 2017, compared to a net loss of $8.5 million, or $(0.31) per diluted share for the same period in 2016.
BOCA RATON, Fla., March 16, 2017 /PRNewswire/ -- Emergent Capital, Inc. (EMGC) announced today it has entered into separate agreements with PJC Investments, LLC, a Texas limited liability company, and approximately 91% of the Company's convertible note holders to recapitalize the Company.
Under the agreements, PJC and certain other parties have agreed to certain undertakings, including: PJC or its designee purchasing $15.0 million in shares of the Company's common stock; the issuance to PJC (or its designee) of a warrant to purchase up to $8.5 million in shares of the Company's common stock; restructuring the Company's existing senior secured notes and unsecured convertible notes to reduce their interest rates and to extend their maturities; PJC (or its designee) purchasing up to 100% of the Company's New Senior Secured Notes from holders thereof; and the Company issuing up to an additional $10.0 million principal amount of New Senior Secured Notes to PJC (or its designee). Additionally, subject to certain terms and conditions, the convertible note holders will have the opportunity to purchase up to $8.0 million of the Company's common stock.
The agreements and the proposed transactions were unanimously approved by Emergent's Board of Directors on March 13, 2017. The consummation of the transactions contemplated under the agreements will require, (i) approval by the Company's shareholders of an amendment to the Company's charter to increase the number of shares of common stock authorized for issuance by the Company at a meeting of the shareholders to be scheduled as soon as practicable and (ii) participation of at least 98% of the holders of each of the Company's Senior Secured Notes and the Company's Unsecured Convertible Notes in the applicable exchange offer. The proposed transactions are expected to close in the second quarter of 2017. Upon the closing of the proposed transactions, Emergent's Board of Directors will include four members representing PJC and one member representing the convertible note holders. The Company's common stock will continue to be traded on the OTC Market Group's OTCQB® Venture Market under the ticker symbol "EMGC."
"We believe this transaction with PJC Investments is in the best interests of our various stakeholders because it will recapitalize our balance sheet while maintaining our valuable life settlement portfolio," said Antony Mitchell, CEO of Emergent Capital. "With our new partnership with PJC and Pat Curry, Emergent will now be afforded the opportunity to grow our business prudently without the cash constraints we've experienced in the past."
Patrick J. Curry, President and CEO of PJC Investments, LLC, said, "Emergent Capital has a strong foundation of assets which will only increase in value over time. With our investment, we expect the Company to realize the long term gains which are embedded in the life settlement portfolio benefiting both equity and debt investors." PJC is working with Triax Capital Advisors LLC, led by Joseph Sarachek, on this transaction.
Upon the closing of the proposed transactions:
The Company will sell to PJC or its designee 60,000,000 shares, and to certain of the Company's convertible note holders up to 32,000,000 shares, of the Company's newly issued common stock, at a price of $0.25 per share for an aggregate price of up to $23.0 million.
The Company will issue to PJC or its designee a warrant to purchase up to 34,000,000 shares of the Company's common stock at an exercise price of $0.25 per share for an aggregate exercise price of up to $8.5 million. The warrant shall vest and become exercisable as follows: (i) with respect to 14,000,000 of such shares, immediately upon the issuance of the warrant, and (ii) with respect to the remaining 20,000,000 of such shares, at later times tied to the conversion of existing convertible notes and new convertible notes outstanding upon the closing of the proposed transactions into shares of common stock. The warrant will have an eight year term.
The Company will issue 5.0% Senior Unsecured Convertible Notes due 2023 in an aggregate principal amount of approximately $75.0 million to holders of, and in exchange for, the Company's existing 8.5% Senior Unsecured Convertible Notes due February 2019. The new convertible notes will be unsecured senior obligations of the Company and will mature in 2023.
The Company will issue 8.5% Senior Secured Notes due 2021 in an aggregate principal amount of approximately $30.0 million to holders of, and in exchange for, the Company's existing 15% Senior Secured Notes due 2018, and PJC or its designee may acquire an additional principal amount of $10.0 million of New Senior Secured Notes. The New Senior Secured Notes will be secured senior obligations of the Company and will mature in 2021.
PJC or its designee will purchase up to 100% of the New Senior Secured Notes from the holders thereof for an aggregate purchase price equal to the face amount of such purchased New Senior Secured Notes.
About Emergent Capital, Inc.
Emergent Capital (EMGC) is a specialty finance company that invests in life settlements. More information about Emergent can be found at www.emergentcapital.com.
About PJC Investments, LLC.
PJC Investments, LLC, based in Waco, Texas, is an active and operating holding company with interests in a variety of businesses including transportation, real estate, construction, retail hearing healthcare, pharmaceuticals, life settlements, and a widely diverse group of other holdings.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of Emergent Capital, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "will," "expects" or similar expressions, and involve known and unknown risks and uncertainties. Although Emergent believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. These statements include, but may not be limited to, those related relating to PJC or its designee's investment in the Company upon the closing of the proposed transactions, including the total amount to be provided in equity and debt investments, the purchase of the Company's common stock, the exercise of the warrant, the restructuring of the Company's existing senior secured notes and unsecured convertible notes to reduce their interest rates and to extend their maturities, the purchase of the Company's senior secured notes and the issuance of an additional principal investment of the Company's New Senior Secured Notes, the necessary approval by the Company's shareholders, the timing of closing the proposed transactions, the composition of the Board of Directors of the Company after closing the proposed transactions, the Company's belief that the proposed transactions are in the best interests of its various stakeholders, the Company's expectations regarding the extent of the impact of the proposed transactions on the Company's recapitalization efforts, and expectations regarding the Company's long term gains and related benefits to investors as a result of the proposed transactions. In addition to the risks and uncertainties noted in this release, there are certain factors that could cause actual results to differ materially from those anticipated by some of the statements made. These include (1) risks associated with the proposed transactions, including but not limited to risks related to the failure to close the proposed transactions, including due to the failure to receive the requisite shareholder approval, (2) the ability to successfully complete recapitalization efforts, (3) loss of key management and other personnel, (4) risks associated with our debt leverage and operating covenants under our debt instruments, (5) changes in economic conditions in the United States and abroad, and (6) other risks, uncertainties and other factors described in the Company's quarterly reports on Form 10-Q and annual reports on Form 10-K and in the Company's other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Other than as required under the securities laws, Emergent does not assume a duty to update these forward-looking statements.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/emergent-capital-announces-recapitalization-with-pjc-investments-and-convertible-noteholders-300425190.html
Symbol Last Price Change % Change
EMGC
Emergent Capital, Inc.
0.3121 0.0171 5.80%
EML
The Eastern Company
19.80 0.00 0.00%
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EMG changed to EMGC. Delisted from the NYSE to the OTC.:
http://otce.finra.org/DLAdditions
I think the better analogy is there is an urgent breach of the dam that needs to be addressed and the man that should have done that is on the way out, a little late. Hopefully things that should already have been addressed by now will be at this upcoming conference call. As usual in these things the two camps that form in trying to figure the fate of the commons clearly favor the 'nays' with the other side being more creative in their scenario of why there is still hope.
Yes the delist will save them money, but it also brought a 30% drop in market cap. The bonds trading below par, the opionality of the bonds basically becoming worthless, $100M in secured and convertible debt all senior to the common equity are bad ju-ju. In spite of the talk of reorg. by the company, to me the bonds tell the tale. Apparently the co. has either obfuscated the structure or has made a complete and incompetent mess of things for quite awhile, more likely a combination of both
The most compelling argument for the commons seems to be possible illegal action being exposed if they can't address debt and remove the stink from the actuarial valuations and motivation by management and or Bulldog to not let that happen.
I never wanted to learn anything about this company having entered trying to catch a bottom bounce and for various reasons missed a chance to exit at a modest profit. I'm being stubborn in refusing to take a signicant loss at this point waiting to see if this becomes 'someone's' plaything next week as delistings and smell of bk. sometimes trigger, not to mention if management can suddenly learn to be inspiring . I'm not sure if having the 3rd fall on a Friday is a good thing or not, but there should be some action regardless.
Emergent Capital Announces Plans to Voluntarily Delist from NYSE and Trade its Shares on the OTC Marketplace
http://www.prnewswire.com/news-releases/emergent-capital-announces-plans-to-voluntarily-delist-from-nyse-and-trade-its-shares-on-the-otc-marketplace-300395020.html
Yep, stinks of insiders dumping.
I have been watching this one the last few days wondering why it is so beaten down. Every time I think it is a good time to purchase some shares it goes down some more so I hold off. Today may be the bottom but seeing spiral out of control on no news worries me.
YOUR SUPPORT .68 GONE TIJMOMBERRRRRR?????..NEXT VIDEO ON THIS PLEASE.JMO
* * $EMG Video Chart 01-04-17 * *
Link to Video - click here to watch the technical chart video
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