Mill City Ventures III, Ltd Commits $3M for Twin Cities Senior Care Provider

Rhea-AI Summary

Mill City Ventures III (NASDAQ:MCVT) has announced a $3 million loan commitment to Coventry Holdings of Minnesota, a Twin Cities-based senior care facility operator. The funding will support Coventry's short-term capital needs while it seeks longer-term expansion capital. The loan carries an annual interest rate exceeding 24% and is considered low-risk by Mill City.

Coventry plans to expand its operations by adding seven facilities over the next couple of years, aiming to reach 25 total locations. Mill City, with over $6M in cash liquidity, continues to pursue lending opportunities in insurance settlements, asset-based loans, real estate backed loans, and equity investments. This commitment builds upon a previous financing arrangement between the two companies.

Positive

• Secured high-yield loan with 24%+ annual interest rate
• Strong cash position with over $6M in liquidity
• Expanding lending relationship with existing customer
• Low-risk credit assessment for the loan

Negative

• None.

News Market Reaction

+13.57%

1 alert

+13.57% News Effect

On the day this news was published, MCVT gained 13.57%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

MINNEAPOLIS, MN / ACCESSWIRE / January 6, 2025 / Mill City Ventures III, Ltd. (NASDAQ:MCVT), a non-bank lender and specialty finance company, announced today its partial funding commitment of a $3 million aggregate loan commitment with a fast-growing Twin Cities-based operator of senior care facilities. The use of proceeds is to fund a short-term capital need while the operator/borrower seeks to obtain one or more longer-term sources of expansion capital.

"We are pleased to continue our lending relationship with Coventry Holdings of Minnesota, LLC. The commitment is made to allow Coventry to continue working toward their expansion plans of an additional seven facilities over the next couple of years to bring Coventry's total locations to 25," commented Mill City Chief Executive Officer Douglas M. Polinsky. "We have a relationship with Coventry through a previous financing arrangement."

"With over $6M in cash liquidity, we continue to discover opportunities to increase shareholder value through our short-term loans," he continued. "The loan to Coventry has an effective annual rate over 24% with what we deem to be a low risk credit."

Mill City has seen a continued robust demand into 2025 for funding opportunities and continues to pursue potential transactions in adjudicated insurance settlements, asset-based loans, real estate backed loans, and equity investment opportunities.

Forward-looking statements in this release are made pursuant to the "safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including without limitation continued demand for short-term specialty non-bank loans, the company's ability to continue growing its investment portfolio while receiving attractive returns, increased levels of competition, new products or offerings introduced by competitors, changes in the market rates of loans, and other risks.

About Mill City Ventures III, Ltd.

Founded in 2007, Mill City Ventures III, Ltd., is a short-term non-bank lending and specialty finance company. More information about the company can be obtained at www.sec.gov or www.millcityventures3.com.

About Coventry Holdings of Minnesota, LLC

Coventry Holdings of Minnesota, LLC operates 17 senior care facilities in the Twin Cities. The company offers services including: memory care; hospice care; respite care and spiritual care. More information can be found at www.suitelivingseniorcare.com.

Contact:

Joseph A. Geraci
Chief Financial Officer
jg@millcityventures3.com
612-868-5815

SOURCE: Mill City Ventures III, Ltd.

View the original press release on accesswire.com

FAQ

What is the size and terms of Mill City Ventures' (MCVT) latest loan commitment?

Mill City Ventures (MCVT) has committed $3 million in loan funding with an effective annual interest rate over 24%, characterized as a low-risk credit.

How many facilities does Coventry Holdings plan to add with MCVT's funding?

Coventry Holdings plans to add seven facilities over the next couple of years, aiming to reach a total of 25 locations.

What is Mill City Ventures' (MCVT) current cash liquidity position?

Mill City Ventures (MCVT) reports having over $6M in cash liquidity as of January 2025.

What types of lending opportunities is MCVT currently pursuing in 2025?

MCVT is pursuing opportunities in adjudicated insurance settlements, asset-based loans, real estate backed loans, and equity investment opportunities.