CHRISTIANSTED, US Virgin Islands, November 15, 2021 (GLOBE NEWSWIRE) – Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE American: AAMC) today announced its financial and operating results for the second quarter of 2021 .
Highlights and recent developments for the third quarter of 2021
Liquidity maintained to allow the Company to have access to capital to seize potential business opportunities. Liquidity consists of $ 84.5 million in cash. Negotiated a settlement agreement on 18,200 shares of our Series A Convertible Preferred Shares (“Series A Shares”) with certain investors, resulting in an increase in balance sheet equity of $ 16.1 million and reduced the Series A shares balance to $ 150 million. All remaining equity securities were sold during the quarter. government securities until it starts new business. Hired Kevin Sullivan to be the company’s new legal counsel and chief compliance officer.
Mr. Thomas K. McCarthy, Interim Chief Executive Officer, said: “The Company’s focus and focus continues to be the assessment and pursuit of certain business opportunities and acquisition targets on which to focus. Company resources and increase shareholder value. The Company has liquidated its equity holdings and is now in a fully cash position in anticipation of an acquisition event.
During the third quarter, the Company also retained the services of an investment bank, Cowen and Company, LLC, and the law firm Norton Rose Fulbright, LLP, to help us identify and consider potential opportunities. acquisition and merger. Although no final decision has been made, the Company is in talks with several potential acquisition or merger targets, including cryptocurrency and brokerage related activities ”.
Third Quarter 2021 Financial Results
AAMC’s net loss to common shareholders for the third quarter of 2021 was $ (5.7) million, compared to net income of $ 11.8 million for the same period in 2020. Due to a gain of $ 16.1 million on settlement of preferred shares, which was recognized directly in equity. , but is included in the numerator of our earnings per share calculations, diluted earnings per share was $ 4.76 for the quarter, compared to $ 7.20 for the same period in 2020.
AAMC’s net income to common shareholders for the nine-month period ended September 30, 2021 was $ 2.4 million, compared to net income of $ 0.1 million for the same period in 2020. Due to a gain of $ 88.0 million on preferred stock settlement in 2021, which was recognized directly in equity, but is included in the numerator for our earnings per share calculations; diluted earnings per share were $ 41.94 for the nine-month period ended September 30, 2021, compared to $ 0.07 for the same period in 2020.
AAMC is historically an asset management company that provides portfolio management and corporate governance services to investment vehicles, but given the sale and termination of some operations, the Company is in the process of to reposition itself. Further information is available at www.altisourceamc.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning beliefs, estimates, projections, expectations and assumptions of management with regard to, among other things, the financial results, future operations, business plans and investment strategies of the Company as well as industry and market conditions. These statements can be identified by words such as “anticipate”, “intend”, “expect”, “may”, “could”, “should”, “should”, “plan”, “estimate”. “,” Target “,” “seek”, “believe” and other expressions or words with similar meanings. We caution that forward-looking statements are qualified by the existence of certain risks and uncertainties which could cause the results and actual events differ materially from what is contemplated by forward-looking statements. Factors that could cause our actual results to differ materially from these forward-looking statements may include, but are not limited to, our ability to initiate new ventures. or, to the extent that these businesses are developed, our ability to make them successful or to maintain the performance of any such businesses; the evolution of the litigation regarding our redemption obligations under the certificate of designation of our Series A convertible preferred shares; and other risks and uncertainties detailed in “Risk Factors” and other sections described from time to time in the Company’s current and future documents with the Securities and Exchange Commission. The foregoing list of factors should not be considered exhaustive.
Statements made in this press release are current as of the date of this press release only. The Company assumes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, whether as a result of new information, future events or otherwise.
Altisource Asset Management Corporation Condensed Consolidated Statements of Income (in thousands, except per share and per share) (unaudited)
Condensed Consolidated Balance Sheets of Altisource Asset Management Corporation (in thousands, with the exception of amounts per share and per share)
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