White Plains, N.Y.-based Debt Resolve Inc., which hosts an online bidding system to resolve debts, has received proof of funds from Harmonie International LLC, and granted Harmonie an extension to June 20 to fulfill its commitment to invest $7 million in the company.
DRI entered a Securities Purchase Agreement with Harmonie for the private placement of DRI stock at $2.36 per share, and warrants to purchase additional shares, which could result in additional cash to the company.
This and prior delays were caused by Harmonie's regulatory and trading issues unrelated to Debt Resolve. Harmonie has reconfirmed its commitment to fund Debt Resolve. The parties do not expect any further delay in funding and June 20 is considered to be a final date.
On June 4, the company received notice from the American Stock Exchange advising of the exchange's intent to file a delisting application with the Securities and Exchange Commission due to the funding deficiency as of May 30. Debt Resolve will appeal the AMEX intent and seek a time extension to complete the Harmonie transaction.
"We are confident we will receive the Harmonie funding by June 20 and be in full compliance with the AMEX listing requirements," Debt Resolve CEO Kenneth Montgomery said.