SOURCE: Sparta Commercial Services, Inc.

December 07, 2009 08:30 ET

Sparta Signs Letter of Intent to Acquire Assets of Consumer Finance Company

NEW YORK, NY--(Marketwire - December 7, 2009) - Sparta Commercial Services, Inc. (OTCBB: SRCO) today announced that it has signed a Letter of Intent to acquire the assets of a Denver-based consumer finance company. The assets to be acquired include a portfolio of performing motorcycle loans in excess of $14 million, inventory, cash and other assets. Sparta expects the transaction will close by January 31, 2010.

The acquisition is subject to the completion of a definitive purchase/sale agreement, Sparta's completion of due diligence, the receipt of audited financials, and certain other factors. The ultimate purchase price is subject to adjustment at closing based on the value and performance of the portfolio to be acquired.

About Sparta Commercial Services: Sparta Commercial Services is a New York-based, nationwide financial services company dedicated to the powersports industry, offering financing and leasing products to consumers and retail powersports dealers, as well as a variety of commercial products for governmental agencies that require motorcycles and other equipment for law enforcement activities.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are valid only as of today and we disclaim any obligation to update this information. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, obtaining, satisfying terms of, and amount of credit lines, competition, financing and commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, management of potential growth, system interruption, consumer and industry trends, limited operating history, and government regulation. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: http://www.sec.gov.

Contact Information

  • Contact:

    Dick Trotter
    COO
    Sparta Commercial Services, Inc.
    (212) 239-2666