*DJ Crossroads Systems, Inc. Announces Merger With Rise Line Business Credit >CRSS
(MORE TO FOLLOW) Dow Jones Newswires
September 28, 2021 07:45 ET (11:45 GMT)
Press Release: Crossroads Systems, Inc. Announces Merger With Rise Line Business Credit
Crossroads Systems, Inc. Announces Merger With Rise Line Business Credit
Merger to Expand Crossroads' Product Offering into New Business Sectors
PR Newswire
DALLAS, Sept. 28, 2021
DALLAS, Sept. 28, 2021 /PRNewswire/ -- Crossroads Systems, Inc. ("Crossroads")(OTCQX: CRSS), a holding company focused on investing in businesses that promote economic vitality and community development, announced today a merger with Rise Line Business Credit, LLC ("Rise Line"), a nationwide asset-based lending firm that provides innovative working capital solutions.
Through this transaction, Crossroads anticipates being able to provide better accessibility to banking for small businesses and assist in their transition into the conventional banking system where many are currently underserved. The merger also expands Crossroads' impact product offering to small businesses that are in asset-heavy sectors such as manufacturing, distribution, retail and consumer products, business services, staffing, and technology services.
"This merger enables us to expand our organization into an adjacent competency and diversify our product offering to small businesses across a range of industries," said Eric Donnelly, CEO of Crossroads. "Rise Line has a scalable platform that offers customized loan structures and optimal solutions to its customers to achieve their capital goals. We are thrilled to expand our small business impact reach to more customers across the country deserving of responsible credit extension."
Under the terms of the agreement, which was unanimously approved by the members of Crossroads' Board of Directors, the purchase price to effect the transaction was approximately $10 million in cash. The capital infusion immediately expands Rise Line's base to serve small and midsize companies that are often unable to secure appropriate financings from banks and other non-bank lending sources.
"This capital expansion will allow us to build on the strong base of relationships and partnerships we have built since our launch in 2017," said Rise Line CEO Gaurang Vyas. "We look forward to continue to serve small businesses across the nation in partnership with Crossroads."
The Crossroads and Rise Line merger is a demonstrated commitment to offering institutional-quality products and services to small and midsize businesses to help them realize and leverage the full value of their assets.
About Crossroads Systems, Inc.
Crossroads Systems, Inc. (OTCQX: CRSS) is a holding company focused on investing in businesses that promote economic vitality and community development. Crossroads' subsidiary, Capital Plus Financial (CPF), is a certified Community Development Financial Institution (CDFI) and Certified B-Corp, which supports Hispanic homeownership with a long-term, fixed-rate single-family mortgage product.
About Rise Line Business Credit
Rise Line Business Credit, a nationwide specialized non-bank lender formed by a team of industry veterans, provides debt solutions to clients throughout the U.S. They have created a platform that brings this broad industry expertise and structuring ability to businesses seeking an alternative to traditional bank lenders. Client solutions typically include asset-based revolving lines of credit and senior secured term loans with loan facilities ranging from $2 million to $15 million with the ability to agent and syndicate larger transactions.
Press/media contact:
September 28, 2021
Andy Boian
dovetail solutions(TM)
(303) 868-0085
aboian@dovetailsolutions.com
Investor Relations contact:
Matt Glover and Tom Colton
Gateway Investor Relations
CRSS@gatewayir.com
(949) 574-3860
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SOURCE Crossroads Systems; Capital Plus Financial
/Web site: http://www.crossroads.com
(END) Dow Jones Newswires
September 28, 2021 07:45 ET (11:45 GMT)