UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): May 7, 2012

Manhattan Bridge Capital, Inc.

(Exact Name of Registrant as Specified in Charter)

New York 000-25991 11-3474831
(State or Other Jurisdiction
of Incorporation)
(Commission File Number) (IRS Employer Identification No.)

60 Cutter Mill Road, Great Neck, NY 11021
(Address of Principal Executive Offices) (Zip Code)

(516) 444-3400

(Registrant’s telephone number,

including area code)

 

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Section Act (17 CFR 230.425).  
     
¨ Soliciting material pursuant to Rule 14A-12 under the Exchange Act (17 CFR 240.14a-12).

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

  
 

This Current Report on Form 8-K is filed by Manhattan Bridge Capital, Inc. (the “Registrant”), in connection with the item set forth below.

Item 1.01. Entry into a Material Definitive Agreement.

 

On May 2, 2012, the Registrant entered into a into a Line of Credit Agreement with Sterling National Bank pursuant to which the Bank has agreed to advance up to $3.5 million against assignments of mortgages and other collateral (the “Sterling Credit Line”). The Sterling Credit Line was conditioned on an unlimited personal guarantee from Assaf Ran, the Registrant’s CEO.

The interest rate on the Sterling Credit Line will be 2% in excess of the Wall Street Journal prime rate, but in no event less than 6%, per annum, on the money in use. Total initiation costs for the Sterling Credit Line were approximately $15,000.

Assaf Ran, Chairman of the Board and CEO stated, "This is a very important day for the Company. We achieved a milestone by arranging a relatively low cost source of funding which is essential for continued growth of the Company.”

“The transaction was only possible because of my personal guarantee, which I was willing to provide only because of the grant of restricted shares to me as part of my compensation package and in cancellation or exchange for prior option grants and prospective option grants, all according to a formula recommended to the Board by an independent third-party expert, as detailed in the Company’s previous public filings,” added Mr. Ran.

Item 8.01: Other Events.

On May 7, 2012, the Registrant issued a press release announcing its entry into the Sterling Credit Line, which press release is Exhibit 99.1, hereto.

Item 9.01: Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Description
10.1 Line of Credit Agreement, dated May 2, 2012, between the Registrant and Sterling National Bank.
99.1 Press Release, dated May 7, 2012.

* * * * * *

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

  MANHATTAN BRIDGE CAPITAL, INC.
     
     
Dated: May 7 , 2012 By: /s/ Assaf Ran  
  Name: Assaf Ran  
  Title: President and Chief Executive Officer

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Contact:

Assaf Ran, CEO

(516) 444-3400

SOURCE: Manhattan Bridge Capital, Inc.

Manhattan Bridge Capital, Inc. Establishes a $3.5 Million 6% Revolving Line of Credit

Long Island, N.Y. May 7, 2012 / GLOBE Newswire -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

Manhattan Bridge Capital, Inc. announced today that it had entered into a Line of Credit Agreement with Sterling National Bank pursuant to which the Bank has agreed to advance up to $3.5 million against assignments of mortgages and other collateral.

Assaf Ran, Chairman of the Board and CEO stated, "This is a very important day for the Company. We achieved a milestone by arranging a relatively low cost source of funding which is essential for continued growth of the Company.”

The Company’s management and the Board of directors are grateful to the Sterling National Bank team for the smooth and professional transaction and excited about working together in the future.

This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are typically identified by the words “believe,” “expect,” “intend,” “estimate” and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial conditions and results of operations and our business and growth strategies. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as “Cautionary Statements”), including but not limited to the following: (i) the successful integration of new businesses that we may acquire; (ii) the success of new operations which we have commenced and of our new business strategy; (iii) our limited operating history in our new business; (iv) potential fluctuations in our quarterly operating results; and (v) challenges facing us relating to our growth. The accompanying information contained in this report, including the information set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.