EVCI Career Colleges Holding Corp. (NASDAQ: EVCI) announced today that it has completed a previously announced financing with ComVest Investment Partners III, L.P. (an affiliate of ComVest Group Holdings LLC) and participating EVCI senior management (the "ComVest Financing"). The ComVest Financing provided gross proceeds to EVCI of $10.1 million from the sale of three year 12% convertible notes for $8.7 million and 2.5 million shares of common stock for $1.4 million. In addition, warrants to purchase up to 26.9 million shares were issued and warrants to purchase 0.6 million shares are issuable to participating management upon paying $0.4 million when required to collateralize, together with ComVest, letters of credit of up to $6.7 million.
At the same time as closing the ComVest Financing, EVCI completed a restructuring of its indebtedness to Harris N.A. (the "Bank Debt Restructuring"). The net proceeds from the ComVest Financing were approximately $8.0 million after paying expenses of the ComVest Financing and Bank Debt Restructuring. The net proceeds were used to reduce the term loan owed to Harris N.A. to $2.675 million and to pay other unrelated expenses.
