| General Credit Corporation | |||
| Ticker: | LOAN | 211 East 70th Street | |
| Exchange: | NASDAQ-Small Cap Market | New York, NY 10021 | |
| Industry: | Financial (SIC Code 6099) | (212) 861-2867 | |
| Type of Shares: | Common Shares | Filing Date: | 8/9/96 | |
| U.S. Shares: | 2,700,000 | Offer Date: | 4/25/97 | |
| Non-U.S. Shares: | 0 | Filing Price: | $3.00 | |
| Primary Shares: | 2,700,000 | Offer Price: | $3.34 | |
| Secondary Shares: | 0 | Gross Spread: | $0.34 | |
| Offering Amount: | $8,100,000 | Selling: | ||
| Expenses: | - | Reallowance: | ||
| Shares Out After: | 4,598,000 |
| Manager | Tier | Phone |
| Barron Chase Securities, Inc. | Lead Manager | (800) 747-1202 |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 3/31/96 | 3/31/96 | |||
| Revenue: | $0.00 | $0.00 | Assets: | $0.20 | |
| Net Income: | $0.00 | -$0.02 | Curr Assets: | ||
| EPS: | -$0.01 | Liabilities: | $0.23 | ||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | -$0.03 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| Since its inception as a New York corporation in February 1995, the company's activities have been limited to administrative activities and, in February 1996, entering into an agreement to purchase the business of New York Payroll Factors, Inc. To date, the company has not generated any revenues nor engaged in any operations. Since the purchase of its current business in January 1992, NYPF has provided working capital financing to its customers through the discounted purchase of checks, generally on a non-recourse basis with respect to the NYPF Customers except to the extent of forged signatures on and stop payments of the purchased checks. The NYPF Customers are small and medium-sized independent contracting firms located in the New York City metropolitan area and northern businesses such as apparel manufacturers and construction firms. Included among the NYPF Customers are sewing contractors, wholesale distributors, independent trucking companies, printing companies, converters, healthcare providers, insurers and commercial real estate owners. |
| Competition |
| The company competes in its check factoring business with firms that provide working capital financing to small and medium sized businesses. Those competing firms include banks, financial institutions, commercial finance companies and factoring companies, some of which may have substantially greater financial and other resources than the company. The company believes, based on an informal study conducted by it, that, including the company, there are approximately 20 check factoring firms operating in the New York City "garment district," all within the same seven block area in which the company customers are located. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to consummate the NYPF Business Combination; to retire company indebtedness to certain individuals and for working capital. |
| # of Units: | 900,000 | |||
| Unit Ticker: | LOANU | Unit Price: | $10.00 | |
| Warrant Ticker: | LOANW | Warrant Price: | ||
| Warrant Exercise Date: | Warrant Exercise Price: | |||
| Warrant Expiration Date: | ||||
| Warrant Detachable: | Yes | Warrant Detach Date: | ||
| Warrant Callable: | No |
| Unit Composition: 3 Common Shares + 6 Warrants |
| Warrant Entitlement: 1 Common Share |