Debt Resolve (AMEX: DRV) the provider of an online collections auction system, reported it received a loan to operate its call center collections business and signed an unnamed top-10 debt collection and management firm based in the United Kingdom.
White Plains, N.Y.-based Debt Resolve entered into a $275,000 line of credit with William B. Mooney, a member of its board, according to a filing yesterday with the U.S. Securities and Exchange Commission. In return, Mooney receives a five-year warrant to buy up to 137,500 shares of Debt Resolve at $2 a share. Debt Resolve was trading midday today at $2.02, up 1.5 percent.
The loan will be used to fund working capital needs, including the operations of Debt Resolve subsidiary First Performance Corp., a collection agency with about 100 collectors in two offices in Las Vegas and Fort Lauderdale, Fla. It claimed 2006 gross revenues of $6 million.
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