Seaway Valley Capital, a diversified holding company, has executed a definitive agreement for equity financing of up to USD20m from Boston-based Auctus Private Equity Fund.
Seaway Valley Capital, a diversified holding company, has executed a definitive agreement for equity financing of up to USD20m from Boston-based Auctus Private Equity Fund.
The funding is contingent upon an effective registration of the securities with the Securities and Exchange Commission.
Thomas Scozzafava, chief executive officer of Seaway Valley, says: "This funding commitment has come at a crucial time for Seaway and its operating subsidiaries. Proceeds from this funding will be used to repay debt – both vendor payables and bank loans at the company’s subsidiaries as well as convertible securities at the parent.
"After debt and vendor payable reductions, particularly at Hackett’s Stores, we will look to utilize the funds for selective expansion opportunities at Hackett’s, capital equipment additions at Alteri Bakery, and production and marketing funds for Sackets Harbor Brewing Company."
The floating rate convertible debentures originally issued in December 2007 to Golden Gate Investors with a current balance of USD1,132,500 were acquired in 2009 by a third party. Seaway is currently negotiating to restructure those debentures.
Seaway also entered into an exclusive consulting agreement earlier this year with Fuselier Holdings 1, under which Fuselier has provided certain debt restructuring services aimed at eliminating or dramatically reducing the company’s junior and senior debts by resolving and settling creditor claims.
