MINNEAPOLIS, May 18, 2020 /PRNewswire/ -- Mill City Ventures III, Ltd. ("Mill City", or the "Company") (OTCPK: MCVT) (http://www.millcityventures3.com) announced today that net investment gain for the first quarter ended March 31, 2020 was approximately $79,587 compared to ($157,917) for the same period a year ago. The gain was a result of significant growth in total investment income and decreased operating expenses.
Total investment income for the first quarter was $184,979 compared to $39,419 for the same period a year ago. Interest income grew by approximately 500% for the period, to $178,245 from $26,269. The increase was due to the interest received on the origination of two loans in the period. Total dividend income decreased from $13,050 to $6,734 due to the sale of most of the public securities paying dividends.
"In December last 2019 we transitioned out of the 1940 Act and the Business Development Company regulatory requirements. Recently the board of directors approved our recharacterized business as a non-bank lender and specialty finance company. Subsequently, we liquidated most of our public securities holdings. The opportunities we have resulted from having cash available to loan," commented Chief Executive Officer Douglas M. Polinsky.
The company ended the first quarter with over $5M in cash and has subsequently made an additional two loans for a total of $900,000. With over $4M available to lend, the Company continues to explore opportunities in real estate, title loans, insurance claims and business acquisitions. The loans are generally structured with short maturities ranging from 9 to 12 months.
Forward-looking statements in this release are made pursuant to the "safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including without limitation continued demand for short-term specialty non-bank loans, increased levels of competition, new products or offerings introduced by competitors, changes in the market rates of loans, and other risks.
About Mill City Ventures III, Ltd.
Founded in 2007, Mill City Ventures III, Ltd., is a short-term non-bank lending and specialty finance company.
SOURCE Mill City Ventures III, Ltd.