Sparta Completes $3 Million Private Placement
July 22, 2005
Filed under Uncategorized
Sparta Commercial Services, Inc., an Internet-based sales finance and leasing company dedicated exclusively to the powersports industry, says it has completed a $3 million private placement of units consisting of 6% Series A convertible, redeemable preferred stock, and three-year common stock warrants.
"We are pleased to complete this offering as it represents an important step in the launching of our powersports financing platform,” said Anthony L. Havens, Sparta's CEO. “Having strengthened our finances with this initial offering, we are now building lending relationships that will provide additional capital to fund our lease and retail installment sales contract originations.
“Leveraging our proprietary point of sale iPLUS (Internet Purchasing Leasing Underwriting Servicing) web-based origination platform, we launched our private label financing programs for scooters and can now launch our motorcycle finance products focused on vehicles 600 cc and above."
New York-based Maxim Group, LLC served as the placement agent for the offering. Sparta has agreed to file a registration statement for the resale of common stock underlying the units within 90 days of the final closing of the private placement.
Sparta provides a full line of financing solutions including indirect retail installment sales contracts and direct closed-end leases, as well as related services including GAP coverage and vehicle service contracts.