Mill City Ventures to adopt Sui treasury strategy in $450 million deal

WAYZATA, Minn. - Mill City Ventures III, Ltd. (NASDAQ:MCVT), a non-bank lender and specialty finance company with a current market capitalization of $35.77 million, announced Monday it has entered into securities purchase agreements for a private placement of approximately $450 million, with plans to use 98% of proceeds to acquire SUI cryptocurrency as its primary treasury reserve asset. The announcement comes as MCVT shares have surged over 235% in the past week, with the stock currently trading at $5.9.

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The private placement involves the sale of 83,025,830 shares of common stock at $5.42 per share, with London-based Karatage Opportunities acting as lead investor alongside the Sui Foundation. The offering, expected to close around July 31, also includes participation from firms including Galaxy Digital, Pantera Capital, and Big Brain Holdings. Mill City maintains strong financial health with an excellent current ratio of 7.93, indicating robust liquidity to meet short-term obligations.

Upon closing, Mill City will undergo leadership changes with Karatage co-founder Marius Barnett becoming Chairman and Stephen Mackintosh taking the role of Chief Investment Officer. Dana Wagner, a board member at Coinbase Custody Trust Company, will join as an independent director.

Mill City plans to acquire SUI tokens through open market purchases and via a negotiated agreement with the Sui Foundation. The company will maintain its short-term non-bank lending business with approximately 2% of the proceeds.

"We’re launching at a pivotal moment when both institutional crypto and AI are reaching critical mass," said Mackintosh, noting Sui’s positioning for mass adoption.

A.G.P./Alliance Global Partners is serving as the sole placement agent for the offering, which is being made under exemptions from registration requirements of the Securities Act. The company will file a registration statement with the SEC for the resale of shares sold in the private placement. Given MCVT’s historical price volatility and current trading momentum, with a 118% return over the past year, investors should closely monitor this development.

The information in this article is based on a company press release statement.

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