Mill City Ventures Terminates 02 Finance Acquisition Agreement

TL;DR

**MCVT's planned acquisition of 02 Finance is off, deal terminated January 22, 2024.**

AI Summary

Mill City Ventures III, Ltd. (MCVT) announced on January 22, 2024, the termination of a material definitive agreement, specifically a Share Exchange Agreement with 02 Finance, which was originally signed on December 29, 2023. This agreement, which would have resulted in 02 Finance becoming a wholly-owned subsidiary of MCVT, was mutually terminated because the parties could not agree on the final terms and conditions. This matters to investors because the planned acquisition, which could have significantly altered MCVT's business, will no longer proceed, potentially impacting future growth prospects and strategic direction.

Why It Matters

The termination of this acquisition means Mill City Ventures III, Ltd. will not be expanding its business through 02 Finance as planned, which could affect its future revenue streams and market position.

Risk Assessment

Risk Level: medium — The termination of a material agreement introduces uncertainty about the company's strategic direction and future growth, which can lead to stock price volatility.

Analyst Insight

Investors should monitor Mill City Ventures III, Ltd.'s future announcements for new strategic initiatives or acquisition plans, as the termination of this agreement leaves a void in its previously stated growth strategy.

Key Players & Entities

• Mill City Ventures III, Ltd. (company) — the registrant terminating the agreement
• 02 Finance (company) — the company that was to be acquired
• December 29, 2023 (date) — original signing date of the Share Exchange Agreement
• January 22, 2024 (date) — date of the earliest event reported, the termination

Forward-Looking Statements

• Mill City Ventures III, Ltd. will seek alternative acquisition targets or strategic partnerships. (Mill City Ventures III, Ltd.) — medium confidence, target: 2024-12-31
• The stock price of Mill City Ventures III, Ltd. may experience short-term volatility due to the uncertainty surrounding its growth strategy. (Mill City Ventures III, Ltd.) — medium confidence, target: 2024-03-31

FAQ

Filing Documents

• mcvt_8k.htm (8-K) — 18KB
• 0001654954-24-000890.txt ( ) — 128KB
• mcvt-20240122.xsd (EX-101.SCH) — 6KB
• mcvt-20240122_lab.xml (EX-101.LAB) — 13KB
• mcvt-20240122_cal.xml (EX-101.CAL) — 1KB
• mcvt-20240122_pre.xml (EX-101.PRE) — 8KB
• mcvt-20240122_def.xml (EX-101.DEF) — 2KB
• mcvt_8k_htm.xml (XML) — 3KB

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement . On January 22, 2024, Mill City Ventures III, Ltd. ("Mill City"), Eastman Investments, Inc., a Nevada corporation ("Eastman"), and Lyle A. Berman, as trustee of the Lyle A. Berman Revocable Trust (the "Trust," and referred to collectively with Eastman as the "Lenders"), terminated the Loan and Security Agreement that the parties had entered into on January 3, 2022 (the "Loan and Security Agreement"). Mill City determined to terminate the Loan and Security Agreement due to the fact that it does not anticipate requiring the liquidity provided under that agreement in the near future. Mill City had earlier satisfied all of its payment obligations under the Loan and Security Agreement, and the termination was deemed effective as of January 1, 2024. Lyle A. Berman, trustee of the Trust, is a director of Mill City. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Mill City Ventures III, Ltd. Date: January 24, 2024 By: /s/ Joseph A. Geraci, II Joseph A. Geraci, II Chief Financial Officer 3

View Full Filing

View this 8-K filing on SEC EDGAR