Mill City Ventures III, Ltd. Extends Further Credit to Mustang Litigation Funding

Mill City Ventures III, Ltd. (“Mill City”) (NASDAQ:MCVT), a specialty short-term finance and non-bank lender, announced today that it extended an additional $1 million of short-term loan principal to Mustang Funding LLC d/b/a Mustang Litigation Funding (“Mustang”) and refinanced and extended earlier provided short-term loan principal.

In December 2022, Mill City announced that it had entered into a non-binding letter of intent with Mustang contemplating a merger combination transaction with Mustang. Contemporaneously, Mill City provided Mustang with a $5 million short-term loan to provide additional capital. The most recent $1 million of additional short-term lending brings the total amount of capital committed to Mustang to $8 million. The principal amount of all short-term loans made to Mustang accrues interest at the per annum rate of 15% and becomes due and payable upon the earlier of May 31, 2024, or 90 days after any termination of discussions for the contemplated combination transaction.

Mill City’s Chief Executive Officer, Douglas M. Polinsky said, “[O]ur December 2022 announcement of our intention, subject to certain identified conditions and to entering into a definitive agreement with Mustang, to effect a combination transaction with Mustang signifies what we believe to be a transformational opportunity for Mill City and its shareholders. For the entirety of 2023, we have been working diligently, in a collaborative manner, with Mustang to lay the foundation for this combination transaction. Our most recent extension of further credit to Mustang aggregates to $8 million of total investment with Mustang-approaching 50% of our net assets-reflecting both our profound commitment and confidence in Mustang and our expectation of completing an eventual combination.”

Jimmy Beltz, Co-Founder and President of Mustang, commented, “We are extremely excited to have Mill City’s support, evidenced by its continuing financial commitment to our company, and are working toward a definitive agreement for the merger. Mustang is continuing to grow its litigation funding business and anticipates that the merger will enable it to further capitalize on the opportunities available within the emerging litigation finance industry. Post-merger, Mustang expects to benefit from being able to access public markets for capital, while also presenting investors with the ability to participate in a differentiated, Nasdaq-listed, litigation finance company.”

Mill City does not anticipate providing any further updates with respect to a possible transaction with Mustang until the earlier to occur of its entry into a definitive agreement with Mustang or the termination of discussions.

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