Viper Powersports, Inc.(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 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 year term of the agreement.
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