Viper Motorcycle Co. has completed a financing agreement with Precious Capital LLC, a wholly owned entity of Platinum Partners based in New York City, to provide Viper with up to $6 million in a secured credit facility.
The agreement has a three-year term, and it carries an annual interest rate of 15 percent. In addition, Precious Capital received 9,694,128 of restricted common shares of Viper as loan inducement compensation.
"Precious Capital has helped us kick-start our Viper Diamondback production line,” says Viper CFO Timothy Kling. “We believe this capital infusion will allow Viper to expand its limits on the amount of inventory the company can carry. In addition, we will now be able to fund our product lines expansion."
As part of the deal, Precious Capital, Viper CEO John Silseth and Kling agreed to a "share lock-up" during the term of the agreement, preventing them from selling shares of Viper for three years.
Posted by Holly Wagner
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