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NEW YORK - Marblegate Capital Corporation (OTCQX:MGTE), a key player in the New York City taxi market, has announced the completion of its merger with DePalma Acquisition I LLC and DePalma Acquisition II LLC. The combined entity, which started trading today on the OTCQX Best Market under the ticker symbols MGTE for common stock and MGTEW for warrants, aims to transform the taxi medallion market by leveraging its extensive industry experience. According to InvestingPro data, the company currently has a market capitalization of $2.38 million, with its stock showing significant price volatility in recent trading sessions.
Marblegate, known for its significant role in the NYC Taxi Medallion MRP+ program that provided debt relief to drivers affected by predatory lending, is now poised to drive further positive change in the industry. The company, which operates as a full-service fleet operator and specialty finance lender, owns and has loans collateralized by more than 3,700 medallions. This makes it the largest lender and owner of NYC taxi medallions, as well as one of the largest fleet operators in the market. InvestingPro analysis shows the company achieved revenue growth of 16.58% in the last twelve months, reaching $6.18 million, though it currently faces profitability challenges with negative EBITDA of $0.96 million.
The merger is expected to professionalize the taxi medallion market, offering benefits to medallion owners, drivers, and investors by promoting additional investments and valuing medallions appropriately. Andrew Milgram, CEO of MCC, emphasized the company's commitment to stabilizing the marketplace and driving positive change.
Legal advisory for the transaction was provided by Paul Hastings LLP for MCC and MAC, and Reed Smith LLP for the DePalma Companies. Piper Sandler & Co. served as capital markets advisor, while Centri Business Consulting, LLC and Huron Transaction Advisory LLC offered accounting, finance advice, and a fairness opinion, respectively.
The company's forward-looking statements indicate its expectations for the impact of the securities trading on the OTC Markets and its plans for potential Nasdaq listing post-merger. However, these statements are subject to risks and uncertainties, including market conditions and the ability to execute business plans and realize additional opportunities. InvestingPro subscribers can access 10+ additional investment tips and comprehensive financial metrics to better evaluate the company's potential. Based on InvestingPro's Fair Value analysis, the stock currently appears undervalued, though investors should note its current ratio of 0.33 indicates potential liquidity challenges.
This news is based on a press release statement.
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