NEW YORK, Nov. 8, 2006 (PRIMEZONE) -- Receivable Acquisition & Management Corporation (OTCBB:RCVA) today announced that it has entered into a privately negotiated and unsolicited transaction with a certain holder of the Company's outstanding 5% convertible preferred stock, $0.01 par value, $10 stated value per share, convertible at $1 per share, in which such holder voluntarily converted such shares of preferred stock into the Company's common stock, $0.01 par value per share.
This transaction closed on November 1, 2006 and resulted in the conversion of 80,000 shares of the Company's preferred stock into 800,000 shares of the Company's common stock and the issuance of 200,000 shares of common stock in exchange for the shareholder foregoing any dividends payable in connection with the preferred stock and early conversion. Max Khan, CEO of RCVA, said that "The conversion of the preferred eliminates an annual dividend expense of $40,000 and gives us additional flexibility in raising capital."
Receivable Acquisition & Management Corporation
Based in New York City, Receivable Acquisition & Management Corporation, specializes in acquisition and liquidation of performing, sub-performing and non-performing receivables. The Company outsources all its collections to specialists in the U.S. and United Kingdom. The Company funds its purchases with its own capital, special purposed vehicles and a fund. The Company is run by two individuals who are well-experienced in corporate finance and management of distressed receivables.
For additional information, please visit our Web site at http://www.ramcoglobal.com .
Except for historical information contained herein, the matters set forth in this news release are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995.) Although Receivable Acquisition & Management Corporation believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from Receivable Acquisition & Management Corporation's expectations. Factors that could contribute to such differences include those identified in Receivable Acquisition & Management Corporation's Form 10-K for the fiscal year ended September 30, 2005, and those described from time to time in Receivable Acquisition & Management Corporation's other filings with the Securities and Exchange Commission, news releases and other communications, including that Receivable Acquisition & Management Corporation may not be able to purchase receivable portfolios at favorable prices or on sufficiently favorable terms or at all. Receivable Acquisition & Management Corporation's reports with the Securities and Exchange Commission are available free of charge through its website at http://www.ramcoglobal.com .