WOODBRIDGE, N.J., November 11, 2021 (Newswire.com) - Municipal Finance & Services Corp. (MFSC), a company focused on government arbitrage and committed to helping local governments and their vendors streamline and digitize the payments process to expand local government participation opportunities for minority-owned, women-owned, veteran / disabled veteran-owned, and the underserved/emerging business sector announced the completion of an equity commitment of up to $5M from Sixth Borough Capital Management. MFSC will use the proceeds to fund adoption of the Company's flagship municipal fintech payments platform AMP, and for other general corporate purposes, targeting the $1.69T U.S. municipal payments market.
Founded in 2017, MFSC's municipal fintech platform AMP provides a cloud-based digital payments platform coupled with its proprietary government obligation funding solution at ZERO COST to local governments. This will enable "Vendors to Get Paid Faster, and Local Governments hold on to their cash for longer periods of time". By digitizing the payments process and accelerating payments to vendors, MFSC seeks to help local governments reinvest in their communities by expanding participation from local vendors, including emerging and underserved businesses and communities creating jobs, strengthening municipal D&B Paydex Ratings, increasing cash on hand, and lowering processing and reporting costs.
"We are excited to partner with Municipal Financial Services Corp. - an exciting emerging FinTech leader in the municipal finance space - to help fund their next stage of development," said Timothy R. Ramdeen, Chief Investment Officer of Sixth Borough Capital Management. "We believe MFSC's compelling economic value proposition, validated strategic partnerships with top-tier industry leaders, and added benefits to both vendors and municipalities from a working capital and credit-rating standpoint, respectively positioning MFSC at the forefront of this industry." MFSC remains equally excited having recently named Mr. Ramdeen to the company's Board of Directors.
"The Company believes that its partnership with Sixth Borough Capital Management and the addition of Mr. Ramdeen to its Board of Directors will provide the fuel in properly launching MFSC during its initial growth phase. The company could not have asked for a better strategic equity partner. Over the past 18 months, our team has been working diligently to build out key strategic partnerships in both the private and public markets. In the private markets, MFSC partners include Bank of America, AvidXchange, and Apex Solutions Group, enabling enterprise-scale growth capabilities. Coupled with these partners, the company has also partnered with the NACo (National Association of Counties), USCOM (U.S. Conference of Mayors), the NJAACOM (N.J. African American Chamber of Commerce) and the USHCOM (U.S. Hispanic Chamber of Commerce) to provide unparalleled market access and distribution."
Municipal Finance & Services Corp.
Municipal Finance & Services Corp. is a municipal fintech non-factoring cloud-based accounts payable processing platform specifically designed to service the unique needs of the local government sector. Every year over 22.6K municipalities spending in excess of $1.69T in core consumable expenditures pay their vendors on average in +75 days. These long pay cycles create enormous challenges for these vendors, which ultimately negatively impact the local economy, the local government, and especially Minority Owned, Women Owned, Veteran / Disabled Veteran Owned, and the Emerging / Underserved Business sector who may not have the financial strength or experience to contract with local communities. Solving this challenge represents a $50B total available market for Municipal Finance & Services Corp.'s (MFSC) AMP Accelerated Municipal Payments) Platform. We are committed to building a platform that enables local governments to build strong, diverse, and inclusive communities by empowering local Minority Owned, Women Owned, Veteran / Disabled Veteran Owned, Emerging / Underserved Businesses to participate in our local government vendor/supplier programs.
Sixth Borough Capital Management, LLC.
Sixth Borough Capital Management, LLC, is a multi-stage, event-driven, alternative investment manager. We utilize a fundamental and value-oriented approach to investing, primarily focused on small and mid-cap private and public equities. Our mandate is unconstrained and fully opportunistic, allowing great latitude in our investment universe - spanning multiple sectors, stages of development, and geographies. We pride ourselves on contrarian thought, high levels of conviction, and an enduring investment process bound by exceptional levels of discipline and risk management. We are committed to building a steadfast business rooted in integrity, strong values, and high ethical standards.
Tungsten Advisors served as the exclusive financial advisor to MFSC. Tungsten Advisors is an investment banking firm focused on strategic advisory and corporate finance for healthcare and technology companies. Tungsten provides transactional services including financings (private placements/PIPEs), corporate partnering and mergers and acquisitions (M&A). Tungsten also focuses on company creation and does direct investments alongside the creation of new companies in healthcare and technology.
Disclaimer: This press release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Forward-looking information is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations, and opinions of management on the date such forward-looking information is made. MFSC undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events, or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT: MUNICIPAL FINANCE & SERVICES CORP. / Theodore Ellenis, CEO - 201.602.2998 / email@example.com
Source: Municipal Finance & Services Corp.