AAMC has created a new group of alternative loans with an initial capital commitment of up to $40 million
AAMC has hired Jason Kopcak, its company president and chief operating officer, to lead the new alternative lending group
AAMC secured an opportunity in crypto ATMs with a right of first refusal with ForumPay
~ Investor call March 21, 2022 at 8:00 a.m. ET ~
CHRISTIANSTED, U.S. Virgin Islands, March 18, 2022 (GLOBE NEWSWIRE) — Altisource Asset Management Corporation (NYSEAM: AAMC) (“AAMC” or the “Company”) today announced its new strategy which includes the creation of a of alternative lending, his nomination of Mr. Kopcak, and his securing of an opportunity in the crypto-enabled ATM space.
As part of this announcement, the AAMC expects its common stock to resume trading 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 reviewing and exploring numerous opportunities, the AAMC Board of Directors approved our new strategic direction of creating an Alternative Lending Group, which convinced the NYSE that the AAMC was once again operational .
The AAMC has established an Alternative Lending Group (“ALG”) and approved an initial equity commitment of up to $40 million for the purchase and origination of alternative mortgage loans. The company has approximately $22 million in alternative mortgage loans in place through today’s date and expects the majority of these loans to close in the coming weeks, subject to the completion of usual due diligence. The AAMC intends to remain nimble, but will acquire alternative mortgages first and expects to begin originations in 2022.
The Company has hired Mr. Kopcak as President and Chief Operating Officer to lead ALG, among other responsibilities. Mr. Kopcak, 50, plans to join the company in May 2022, after his employment with Morgan Stanley ends. Mr. Kopcak began his employment with Morgan Stanley in September 2018 as an Executive Director within Morgan Stanley’s Residential Mortgages team within Global Capital Markets. He has been involved in all facets of the mortgage and alternative lending industry, 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 to September 2018 in a similar position. Mr. Kopcak has over twenty-five years of mortgage lending experience.
The company has also secured a right of first refusal from technology company ForumPay to roll out crypto-enabled ATMs/kiosks worldwide. ForumPay has contractual agreements with companies in the gaming, hospitality, and retail industries that allow for cryptocurrency-enabled transactions. The AAMC has initially budgeted up to $2.0 million, and additional capital will be allocated as needed to grow the business.
“The Board of Directors and I are excited about AAMC’s new strategy and believe we are well positioned to succeed in these businesses and deliver value to our shareholders. We are also delighted to welcome Jason to the company and believe he will be a great addition and help deliver on our strategy. We thank the New York Stock Exchange for working with us through this process and allowing the AAMC to resume trading on the Exchange Monday morning,” said Thomas K. McCarthy, Acting Chief Executive Officer. .
“The Board of Directors and our senior management, with guidance from our advisors, focused on businesses that relied on AAMC’s real estate expertise and asset management. Through this process, we determined that the development of an alternative lending business complemented by the growth opportunities in cryptocurrency transactions and the potential for a cryptocurrency ATM-enabled network offers AAMC its best potential for growth and profitability in creating shareholder value. We also believe that these companies help and support underserved markets. We appreciate the patience of our shareholders and look forward to our fresh start with what the Board considers to be exciting leadership with an excellent leadership team,” said John de Jongh Jr, Acting Chairman of the Board. from AAMC.
Conference call information
AAMC management will host an investor conference call on March 21, 2022 at 8:00 a.m. EST to discuss the Investor Presentation available at www.altisourceamc.com. Please submit your questions before the call to [email protected] by 3:00 p.m. EST, Sunday, March 20, 2022.
For those wishing to participate, the national toll-free access number is 1-877-270-2148, or for international callers, 1-412-902-6510. A phone replay will be available shortly after the call and can be viewed by dialing 1-877-344-7529, or for international callers, 1-412-317-0088 (Replay passcode: 2196424 ). We will also host a live webcast of the call for investors at www.altisourceamc.com.
About the AAMC
Before December 31, 2020, AAMC was historically 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, the AAMC determined that it was in the company’s best interests to form the Alternative Lending Group (ALG) in conjunction with a new initiative in the Crypto ATM business.
Additional information is available at www.altisourceamc.com.
Some of the comments made in this press release may contain forward-looking statements regarding the operations, financial condition and financial results of Altisource Asset Management and such statements involve a number of risks and uncertainties. Forward-looking statements are generally identified by or are associated with words such as “intend”, “plan”, “believe”, “estimate”, “expect”, “anticipate”, “hope”, “should”, “could”, “will”, “could”, “encouraged”, “opportunities”, “potentials” and/or negatives or variations of these terms or similar terminology. In particular, statements regarding our planned alternative lending activities, and the development, deployment and potential growth of crypto ATMs are forward-looking statements. These statements reflect management’s current beliefs and estimates regarding future economic circumstances, industry conditions, company performance and the company’s financial results and are not guarantees of future performance. All of these forward-looking statements are based on current expectations and assumptions which are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the relevant forward-looking statement. With respect to the growth and returns of our alternative lending business, our expectations depend on the ability to acquire and originate loans at attractive prices, obtain leverage, successfully manage our loan portfolio and to successfully sell loans at attractive levels; With respect to the outlook for our crypto ATMs, our expectations hinge on the successful deployment of our first ATMs, actual consumer usage of our ATMs, the proper functioning of our ATMs, and the success of our relationship. with ForumPay. These and other risks are described in the Company’s filings with the Securities and Exchange Commission. All 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 assumes no obligation to anyone to provide such an update under any circumstances.
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