Proceeds used for commercial real estate acquisitions, working capital
By Toni Weeks
San Diego, May 16 - American Community Development Group, Inc. said it has negotiated a one-year funding commitment of up to $1 million from a private equity fund and has drawn the first installment of $50,000 to secure legal, accounting and short-term working capital.
Future installments can be drawn for working capital and acquisitions over the next year.
According to a press release, the priority for the use of proceeds is to expand revenue and cash flow via the completion of commercial real estate acquisitions that will add increased capacity to the company's transitional housing programs, the continued evolution of several business development projects and finalization of previously announced corporate acquisitions.
The company said that the financing is an integral part of the company's accelerated efforts to complete its audits as well as all legal and other requirements to qualify for a QX listing. It also is negotiating additional capitalization for larger acquisitions and mergers.
Management is taking steps to better understand the trading of its stock, the press release noted. The company intends to undergo a review and professional analysis of the DTC, shareholder and NOBO lists in order to understand the narrow trading stock range, despite purchase or sale demand and volume. American Community has directed its transfer agent, Cleartrust LLC, to discontinue providing share structure information, which may be a tool used by professional shorters.
American Community Development, based in St. Petersburg, Fla., acquires distressed property and uses them as transitional housing centers for 501c3 nonprofit clients.
| Issuer: | American Community Development Group, Inc.
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| Issue: | Funding commitment
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| Amount: | $1 million
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| Warrants: | No
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| Pricing date: | May 16
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| Settlement date: | May 16 (for $50,000)
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| Stock symbol: | OTCBB: ACYD
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| Stock price: | $0.0035 at close May 14
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| Market capitalization: | $37,110
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