Altisource Asset Management Corporation (NYSEAM: AAMC) (“AAMC” or
the “Company”) announced today its new strategy which includes the
creation of an Alternative Lending Group, its appointment of Mr.
Kopcak and its securing of an opportunity in the crypto-enabled ATM
space.
In connection with this announcement, AAMC expects
its common stock to begin trading again on the NYSE American on
Monday, March 21, 2022 when the rest of the NYSE American exchange
begins trading. The NYSE had suspended our trading due to concerns
that AAMC was not an operating company; after considering and
exploring many opportunities, AAMC’s Board of Directors approved
our new strategic direction of creating an Alternative Lending
Group and this satisfied the NYSE that AAMC once again had an
operating business.
AAMC has created an Alternative Lending Group
(“ALG”) and approved an initial equity capital commitment of up to
$40 million for the purchase and origination of alternative
mortgage loans. The Company has approximately $22
million of alternative mortgage loans under contract through
today’s date and expects a majority of those loans to close in the
next few weeks, subject to the completion of customary due
diligence. AAMC intends to stay agile but will
initially acquire alternative mortgage loans and anticipates
commencing originations in 2022.
The Company has hired Mr. Kopcak as President and
Chief Operating Officer to lead ALG, among other
responsibilities. Mr. Kopcak, 50, expects to join the
firm in May 2022, following the end of his employment with Morgan
Stanley. Mr. Kopcak began his employment with Morgan
Stanley in September 2018 as an Executive Director with Morgan
Stanley’s residential mortgage team within Global Capital
Markets. He was involved in all facets of the mortgage
and alternative lending business from trading, warehousing,
securitization to investment banking. Prior to his
employment at Morgan Stanley, Mr. Kopcak worked at Nomura, a global
financial services group, from May, 2012 until September, 2018 in a
similar capacity. Mr. Kopcak has more than twenty-five years of
experience in the mortgage business.
The Company has also secured a right of first
refusal with the technology company, ForumPay, to deploy
crypto-enabled ATMs/Kiosks worldwide. ForumPay has contractual
agreements with companies in the gaming, hospitality and retail
industries that allow cryptocurrency enabled transactions. AAMC has
earmarked up to $2.0 million initially, and additional capital will
be allocated as appropriate to grow the
business.
“The Board and I are excited about the new strategy
for AAMC and believe we are in a strong position to succeed in
these businesses and provide value to our shareholders.
We are also pleased to welcome Jason to the Company and think he
will be a great addition and will help deliver on our strategy. We
thank the New York Stock Exchange for working with us through this
process and permitting AAMC to begin trading again on the Exchange
on Monday morning,” said Thomas K. McCarthy, Interim Chief
Executive Officer.
“The Board and our senior management, with the
guidance of our advisors, focused on businesses that built on
AAMC’s real estate expertise and asset management. Through this
process we determined that the development of an Alternative
Lending business complimented by the growth opportunities in
cryptocurrency transactions and the potential of a Cryptocurrency
ATM-enabled network offers AAMC it’s best potential for both growth
and profitability in achieving shareholder value. We also believe
that these businesses assist and support underserved markets. We
appreciate the patience of our shareholders and look forward to our
new beginning with what the Board feels is an exciting direction
with an excellent management team,” said John de Jongh Jr, Interim
Chairman of the Board of AAMC.
Conference Call
InformationManagement of AAMC will host an investor call
on March 21, 2022, at 8:00 a.m. EST to discuss the investor
presentation which is available on www.altisourceamc.com. Please
submit any questions in advance of the call
to ir@altisourceamc.com prior to 3:00 p.m. EST, Sunday, March
20, 2022.
For those who wish to participate, the domestic
toll-free access number is 1-877-270-2148, or for international
callers, 1-412-902-6510. A telephone replay will be available
shortly after the call and can be accessed by dialing
1-877-344-7529, or for international callers, 1-412-317-0088
(Replay Access Code: 2196424). We will also host a live webcast of
the investor call on www.altisourceamc.com.
About AAMCPrior to December 31,
2020, AAMC had historically been an asset
management company that provided portfolio management and corporate
governance services to investment vehicles.
After exploring a number of acquisition
opportunities and different business areas, AAMC determined that it
was in the best interests of the Company to create the Alternative
Lending Group (ALG) in conjunction with a new initiative into the
Crypto ATM business.
Additional information is available at
www.altisourceamc.com.
Forward Looking StatementsCertain
of the comments made in this press release may contain
forward-looking statements in relation to operations, financial
condition and financial results of Altisource Asset Management and
such statements involve a number of risks and uncertainties.
Forward looking statements are usually identified by or are
associated with such words as “intend,” “plan,” “believe,”
“estimate,” “expect,” “anticipate,” “hopeful,” “should,” “may,”
“will,” “could,” “encouraged,” “opportunities,” “potential,” and/or
the negatives or variations of these terms or similar terminology.
In particular, statements as to our expected alternative lending
business, and the development, roll-out and potential growth of
crypto enabled ATMS are forward looking statements. These
statements reflect management’s current beliefs and estimates of
future economic circumstances, industry conditions, Company
performance, and Company financial results and are not guarantees
of future performance. All such forward-looking
statements are based on current expectations and assumptions that
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in the relevant forward-looking statement. With respect to the
growth and returns from our alternative lending business, our
expectations depend on the ability to acquire and originate loans
at attractive pricing, to obtain leverage, to successfully manage
our loan portfolio and successfully dispose of loans at attractive
levels; with respect to the prospects of our crypto enabled ATMs,
our expectations depend on the successful deployment of our first
ATMs, actual use by consumers of our ATMs, the proper operation of
our ATMs and the success of our relationship with ForumPay. These
risks and other risks are described in the Company’s filings with
the Securities and Exchange Commission. Any forward-looking
statements made in this presentation speak only as of the date of
this presentation. Except as required by law, AAMC does not intend
to update these forward-looking statements and undertakes no duty
to any person to provide any such update under any
circumstances.
Contacts: Please contact us with
any questions or comments at the number or e-mail set forth
below.
(704) 275-9113ir@altisourceamc.com
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