Viper Powersports and its subsidiary Viper Motorcycle Co. have come to an agreement with Precious Capital LLC, an entity owned by Platinum Partners, in which VMC will be provided a $6 million secured credit facility with a three-year term.
AUBURN, Ala., April 26, 2012 — Viper Powersports, Inc. (otcqb:VPWI)(Viper), announced today that its subsidiary, Viper Motorcycle Company (VMC), has completed a financing agreement with Precious Capital, LLC, a wholly owned entity of Platinum Partners based in New York City, to provide VMC with up to $6 million in a secured credit facility. The agreement has a three (3) year term and it carries an annual interest rate of 15%. In addition, Precious Capital received 9,694,128 of restricted common shares of Viper as a loan inducement compensation.
Viper’s Chief Executive Officer, John Silseth stated, “This transaction is a milestone in Viper’s evolution. The last twelve months have seen Viper transform from a development into a commercial production company. We believe that this funding will allow us to fully execute a business model that will propel Viper into a first class motorcycle brand.”
Viper’s Chief Financial Officer, Timothy Kling stated, “Precious Capital has helped us kick start our Viper Diamondback production line. 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.”
Jed Latkin, Platinum Partners, Portfolio Manager stated, “Precious Capital invests in well positioned and innovative companies. Viper Motorcycle Company manufactures a world class motorcycle, and we are excited about their potential.”
Precious Capital, and Viper’s C.E.O., John Silseth, and C.F.O., Timothy Kling, have agreed to a “share lock-up” during the three (3) year term of the agreement.
ABOUT VIPER POWERSPORTS, INC: Viper Powersports designs, manufactures and markets a line of premium American V-Twin Super Cruiser motorcycles, V-Twin aftermarket engines and other related aftermarket products through an independent dealer network. Joint venture partner Ilmor Engineering ( www.ilmor.com ), provides technical developmental support for the proprietary 152 cubic inch Viper V-Twin engine, utilizing their 25 years of engine design expertise, ensuring Viper’s long term success as America’s newest domestic OEM of motorcycles. Viper Motorcycle Company website is www.vipermotorcycle.com .
Platinum Partners Credit Opportunities Fund LLC is an asset-based investment fund designed to achieve superior risk-adjusted returns irrespective of the direction of broader market activity by originating loans in markets that are underserved by traditional sources of financing. Having commenced operations in late 2005, PPCO works with borrowers in such diverse business segments as consumer finance, mining, healthcare, litigation, secure trade finance and real estate. The manager continuously seeks out new strategies to provide superior rates of return to investors from various types of debt instruments.
The foregoing material may contain forward-looking statements. We caution that such statements may be subject to uncertainties and that actual results could differ materially from the fore-going statements. Readers accordingly should not place undue reliance on these forward-looking statements, which do not reflect anticipated or unanticipated events or circumstances occurring after the date of these forward-looking statements.