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| Sparta Reports Significant Increase in Shareholder Equity |
| New York; September 3, 2009 |
Sparta Commercial Services, Inc. is pleased to provide an update to its recently announced plan to eliminate substantially all of its short term debt.
As of today, approximately $4.2 million of notes and accrued interest held by the Company’s existing stockholders has been converted into shares of the Company’s common stock. As a result of these conversions, Sparta’s shareholders’ equity increased by over $4.2 million. Additionally, holders of approximately $1.8 million in notes and accrued interest have agreed to convert their notes and accrued interest into shares of common stock thereby increasing shareholders’ equity by an additional $1.8+ million for a potential total increase in shareholder equity of over $6 million.
Commenting on today’s announcement, Anthony Havens, Sparta’s CEO, said “Once the conversion of debt and other previously announced balance sheet enhancements are behind us, we can turn our full focus to utilizing the initial $25 million secured senior credit facility with Autobahn Funding Company LLC and DZ Bank to fully implement the strategies we’ve developed in recent months to gain broader nationwide market share in the financial services sector of the powersports industry. Because many of our competitors have virtually withdrawn from powersports financing as a result of their exposure to the commercial and residential real estate markets, Sparta has an opportunity to gain substantial market share and we couldn’t be more optimistic about the future.”
Sparta Commercial Services, Inc., headquartered in New York City, offers consumer financing and leasing products for powersports vehicles, a Municipal Leasing alternative to governmental agencies that require police motorcycles and other equipment, and a Fleet Leasing program for Harley-Davidson dealers that also operate rental programs. With an industry-wide target market estimate of approximately 10,000 retail dealers, Sparta currently has about 2,300 dealers in its Authorized Dealer Network, or approximately 23% of the market.
Contact:
Dick Trotter, COO
Sparta Commercial Services, Inc.
212-239-2666
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