Korth Direct Mortgage Inc. announces the issue of USD 19 million Series B preferred shares and an investment grade credit rating

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CORAL GABLES, Florida., June 29, 2021 / PRNewswire / – Korth Direct Mortgage Inc. (“KDM”), a leading middle-income commercial real estate lender, today announced the closure of a private placement offer to “qualified institutional buyers” as defined in Rule 144A of the Securities Act. 1933 amended 19,000 shares of Series B preference shares for gross proceeds of USD 19.0 million USA… The net proceeds will be used for general corporate purposes, which may include supporting future growth and KDM’s move to a better execution model through aggregation of collateral for mortgage bonds. Brean Capital LLC acted as the exclusive financial advisor and placement agent for KDM in connection with the offer.

In addition, KDM announced that it has received a BBB + corporate investment rating from Egan Jones Ratings Company, a nationally recognized statistical rating organization. The rating was obtained in connection with the transaction, which also has an investment rating.

“Bryn Capital is a valued partner for KDM. We value their expertise and implementation ability to achieve this transformative deal. We look forward to leveraging the capital injection from our Series B preferred stock offering to achieve the scale we expect will accelerate both our growth and profitability. ” Holly McDonald Court, President and Chief Financial Officer. “We have a national loan portfolio, internal services, a dozen account managers in our initial team, and almost $ 300 million in origin since its inception. We believe that this solid foundation, combined with additional capital, will be a springboard for our next phase of growth. ”

“This is a truly transformative event for KDM and we expect to take us to the next level in implementing our business strategy,” said Pam Hipp, Managing Director of Fixed Income. “This will help us complete funding that was previously not available to us without this rating. Investor response to our securitization platform is expanding with each transaction and our unique approach creates long-term value in the CRE debt markets. ”

“We believe that achieving an investment grade corporate rating is an important external confirmation of our business model and what we are building here at KDM,” commented John Paul Lauria, Vice President of Business Development. “As a vertically integrated source, lender, debt servicer and securitizer of commercial real estate debt, we believe that an investment grade rating will help create a more cost-effective capital structure for our business.”

This press release does not constitute an offer to sell or solicit the purchase of KDM Series B Preferred Shares, nor is it permitted to sell KDM Series B Preferred Shares in any state or other jurisdiction in which such offer, offer or sale would be illegal prior to registration or qualification. in accordance with the securities laws of any such state or jurisdiction.

About KDM

KDM is a vertically integrated originator, lender, service provider and securitizer of first-pledged commercial real estate debt. Coral Gables, Florida… KDM specializes in lending to income-generating real estate, typically light industry, warehouses, offices, multi-family and medical facilities. We provide flexible institutional capital as a smart lending partner and manage borrowers throughout the loan life cycle. KDM issues mortgage-backed bonds (“MSN”) to fund its loans. MSN stands for registered corporate bonds (“KDMMTG” at Bloomberg). You can find more information about the KDM lending platform at www.kdmfinancial.com and visit our corporate website at www.korthdirect.com

ABOUT BREAN CAPITAL

Investment banking group Breana Capital is committed to helping its clients achieve their strategic and financial goals. For over 40 years, the firm has specialized in providing capital raising, M&A and financial advisory services to medium-sized businesses. Throughout its history, Brean Capital has proven itself in providing its clients with in-depth market knowledge, dedication and experience to ensure a successful transaction.

Forward-looking statements

This press release contains statements that are considered forward-looking in nature and should be subject to the provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words “believes”, expects, “expects”, “estimates”, “predicts”, “intends”, “plans”, “objectives”, “potentially”, “may”, “projects”, “prospects “or similar expressions or future or conditional verbs such as” may “,” will “,” should “,” would “and” could “, as well as the negative aspects of these terms and similar words, although some forward-looking statements may be expressed differently. Forward-looking statements also include, but are not limited to, statements of plans, objectives, expectations or consequences of announced transactions, known trends and statements about future performance, operations, products and services of KDM (hereinafter referred to as “we”, “us” or “Our”) and its subsidiaries. Our ability to predict the results or actual consequences of future plans or strategies is inherently uncertain. You should be aware that our actual results could differ materially from those contained in the forward-looking statements.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future results. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results could differ materially from those expressed or implied in a particular forward-looking statement, and therefore, you are cautioned against undue reliance on such statements. In addition, any forward-looking statement is only effective as of the date it is made, and we do not undertake any obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statement was made or to reflect an incident. unforeseen events or circumstances, except as provided by applicable law.

https://www.korthdirect.com/
Contacts: KDM: John Paul Lauria, (561) 876-5818, [email protected]

SOURCE Korth Direct Mortgage

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