Mill City Ventures III, Ltd. (MCVT) Announces August 9th IPO

Mill City Ventures III, Ltd. (MCVT) expects to raise $5 million in an initial public offering on Tuesday, August 9th, IPO Scoop reports. The company will be issuing 1,300,000 shares at a price of $4.00 per share.

Alexander Capital L.P. acted as the underwriter for the IPO.

Mill City Ventures III, Ltd. provided the following description of their company for its IPO: “(Note: This is NOT an IPO. This is a NASDAQ uplisting from the OTCQB, where Mill City Ventures III, Ltd.’s stock trades under the symbol “MCVT”. The company has applied to list its stock on the NASDAQ under the symbol “MCVT”. Mill City Ventures III, Ltd. revised the terms of its IPO – increasing the number of shares of common stock to 1.25 million shares from 666,667 shares and cutting the IPO price to $4.00 from $7.50 – according to an S-1/A filing dated Aug. 4, 2022. Under the new terms, the IPO’s estimated proceeds are the same as before: $5.0 million. On July 26, 2022, the last reported sale of its common stock on the OTCQB was $3.22.) (From the prospectus: “We expect to effect a 1-for-2 reverse stock split prior to or upon effectiveness of the registration statement of which this prospectus forms a part, whereupon our common stock will begin to trade on a reverse split adjusted basis.”) Since 2019, we (a non-bank lender) have engaged in the business of providing short-term specialty finance solutions primarily to private businesses, micro- and small-cap public companies and high-net-worth individuals. Our short-term lending arrangements have an average interest rate of 22.4 percent and typically come due in nine months. These lending arrangements ordinarily involve us obtaining collateral as security for the borrower’s repayment of funds to us. In some circles, short-term high-interest collateralized lending is referred to as “hard-money lending.” Our clients include real estate owners, business owners, home redevelopers, high net worth individuals, professional associations and insurance settlements. (Source: Free Writing Prospectus filed July 28, 2022.) **Note: In the prospectus, Mill City Ventures III, Ltd. says:  (1) “We have also agreed to issue the Representative warrants to purchase shares of our common stock (the “Representative’s Warrants”), to pay the Representative 1.0% of the gross proceeds of this offering as a non-accountable expense, to reimburse the underwriters for certain accountable expenses up to $150,000, and to provide other rights to the Representative. See “Underwriting” beginning on page 58 for additional information regarding underwriting compensation. (2) The amount of offering proceeds presented in this table does not give effect to the underwriters’ over-allotment option we have granted to the underwriters as described below, the shares of common stock underlying the Representative’s Warrants, or proceeds from the exercise of Representative’s Warrants. In the S-1/A filing dated July 27, 2022 – Mill City Ventures III, Ltd. said that for the year ended Dec. 31, 2021: Investment income was $2.7 million for 2021, up from $1.3 million for 2020. Net investment gain was $1.3 million for 2021, up from $0.6 million for 2020. Executive management compensation was $556,432 for the year ended Dec. 31, 2021, and $301,494 for the year ended Dec. 31, 2020. The increase in the current period is primarily related to a one-time bonus payment made during the year 2021.     “.

Mill City Ventures III, Ltd. was founded in 2006 and has 2 employees. The company is located at 1907 Wayzata Boulevard, Suite 205 Wayzata, MN 55391 and can be reached via phone at (952) 479-1923 or on the web at http://www.millcityventures3.com/.

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