EVCI shares rise on news of financing
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- December
- 31
Shares of EVCI Career Colleges Holding Corp. of Yonkers rose after the company said it had obtained new financing.
ComVest Investment Partners III L.P. will provide up to $2.85 million in revolving loans for EVCI’s two subsidiaries, Technical Career Institutes Inc. and Pennsylvania School of Business, EVCI said.
The company also borrowed an additional $350,000 in term loan financing and is eligible to borrow $350,000 more, it said.
As part of the deal, EVCI agreed to increase the size of its board of directors from seven to 11 members and use “best efforts� to find independent candidates. The company also agreed to hire a new chief financial officer or restructuring officer no later than Feb. 29.
EVCI said it will use the funds to finance the Dec. 21 closing of its Interboro Institute, and for working capital and other purposes.
The financing comes at a turbulent time for the company. In November it said it might owe $12.7 million to the U.S. Justice Department over improperly scored and missing admissions tests. Federal grant money paid the tuition for those students.
EVCI shares were up 8 cents, to close at 28 cents.
This entry was posted
on Monday, December 31st, 2007 at 6:05 pm by Jerry Gleeson.
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