To: jrhana who wrote (2083 ) 11/19/2009 1:27:14 PM From: Glenn Petersen Read Replies (1) | Respond to Sports Properties Acquisition Corp. (stock symbol: [t]HMR[/t]), which raised $215.6 million when it went public in January 2008, has announced it wants to continue its existence as a "Taxi Medallion Acquiror and Manager."Sports Properties Acquisition Corp. Announces Plan to Continue Business As a Taxi Medallion Acquiror and Manager it has signed a framework agreement with Medallion Financial Corp. (“Medallion”), which sets forth the steps Sports Properties will take to continue its business as a corporation that acquires, actively manages and leases taxicab medallions, operates on a selective basis, the taxicab fleets associated with those medallions and provides a range of services to the taxi industry. Sports Properties also intends to strategically seek new business opportunities in taxi-related operating businesses. The transactions contemplated by the framework agreement are expected to be completed prior to January 17, 2010, pending approval by Sports Properties' stockholders and warrant holders and subject to certain closing conditions. It is anticipated that, subject to stockholder approval, Sports Properties will change its name to Medallion Management, Inc.Sports Properties' warrant holders will be asked to amend their respective warrants to, among other things, (i) increase the exercise price from $7.00 to $12.00 per share in exchange for extending the warrant expiration by three years to January 17, 2015, (ii) increase the price at which Sports Properties' common stock must trade before Sports Properties is able to redeem the warrants issued in Sports Properties' initial public offering in 2008 (the "IPO") from $14.25 to $18.75 and (iii) eliminate the cashless exercise feature of the warrants issued in Sports Properties' IPO. It is also contemplated that Medallion will cancel, prior to or upon the consummation of the transactions contemplated by the framework agreement, all of its shares acquired from Sports Properties prior to its IPO that it still holds. In addition, Sports Properties is in discussions with the underwriters in its IPO to reduce a portion of the deferred underwriting commissions. since 1995, New York City corporate taxi medallions, the transferable licenses needed to operate street hail taxicabs in New York City, have experienced an average annual appreciation of 17.63% and the average price of a New York City corporate taxi medallion was $767,000 at September 30, 2009. We believe that the existing regulatory systems and related economic factors in not only New York City, but in other cities as well, support the case for additional appreciation in the value of the licenses and for higher lease rates over time. Furthermore, we believe the taxi industry is very fragmented with no one owner owning more than 1% of taxis nationwide. This is a niche industry ripe for consolidation," continued Mr. Murstein. Companies affiliated with Alvin Murstein and Andrew Murstein have lent more than $3,000,000,000 to the taxi industry. finance.yahoo.com
