Pastore & Dailey has added one of the world’s largest research and investment management firms as a client. The client joins some of the largest broker dealers and insurance companies as clients of the Firm, where we represent them in many aspects of their businesses. In this case, the Firm is providing securities regulatory advice and cybersecurity advice.
Tag: Corporate Litigation
Pastore & Dailey Represented Mortgage Services Company in Financing Transaction
Pastore & Dailey represented a mortgage servicing company in a financing transaction designed to allow the company to service a multinational bank. The transaction required expert and careful drafting and negotiation as it involved affiliates as well. Goodwin Proctor’s San Francisco office represented the lender.
Pastore & Dailey Client Gains National Recognition for Co-Working Venture
Pastore & Dailey Client, and former WeWork Executive, Frank Bistrian has gained national recognition by the Wall Street Journal for his new Co-Working venture Network Group LLC.
See Cat Zakrzewski, Former WeWork Executive Launches a Co-Working Company of His Own, Wall Street Journal (Feb. 22, 2018).
SEC Issues Report on the Application of Federal Securities Laws to Crowdfunding Through Cryptocurrency
On July 25, 2017, the Securities and Exchange Commission issued a Report following their investigation of The DAO. The DAO is an unincorporated organization that is just one example of a “Decentralized Autonomous Organization” – a virtual organization embodied in computer code and executed on a distributed ledger or blockchain.
The DAO was formed in 2015 as unique form of crowdfunding whereby participants would vote on proposals and be entitled to rewards. Between April and May of 2016, The DAO offered and sold approximately 1.15 billion DAO Tokens in exchange for approximately 12 million Ether. Ether is a form of virtual currency. These DAO Tokens gave the holder certain voting and ownership rights.
Token holders could vote on predetermined proposals deciding where The DAO invested its money, with each token holder’s vote weighted according to how many DAO Tokens he or she held. On June 17th, 2016, an unknown individual or group attacked The DAO and appropriated approximately 1/3 of the total funds. Although the funds were eventually recovered by The DAO, the SEC began investigating the attack and The DAO. Ultimately, the SEC determined that an Enforcement Action was not necessary, however it issued a report laying out how the Securities Act and the Securities Exchange Act applies to The DAO and similar entities.
Section 5 of the Securities Act prohibits entities not registered with the SEC from engaging in the offer or sale of securities in interstate commerce. Upon investigation of the circumstances surrounding The DAO, the SEC stated that The DAO qualifies as an “issuer” and thus must register as such with the SEC in order to sell DAO Tokens – which the SEC considers to be securities – in compliance with federal securities laws. Given the SEC’s flexible interpretation and application of the Act, this Report is a caution to virtual entities that the federal securities laws are applicable and that the SEC intends to pursue enforcement of these laws in the field of virtual currencies and securities.
Pastore & Dailey Closes Sale of Assets and Heads Bloomberg’s Webinar on CyberSecurity
Pastore & Dailey is pleased to announce that its transactional team completed a sale of assets for a national credit risk research and surveillance application resident on the Bloomberg web portal. And, separately, Pastore & Dailey’s securities regulatory group conducted a webinar for Bloomberg concerning the new regulations of Cybersecurity compliance implemented by the NY Department of Financial Services.
P&D Continues to Grow – New Retention by Fortune 500 Companies
Pastore & Dailey LLC has recently been retained by a joint venture between two large Fortune 500 Companies in connection with the unique financing structure of the joint venture. This new joint venture adds to the growing stable of Fortune 500 companies represented by Pastore & Dailey LLC.
$3MM DECD Approval
Pastore & Dailey’s transactional team successfully concluded a $3 million loan financing transaction on behalf of client NewOak Capital, a specialized financial advisory firm based in New York City that provides consulting, analysis, and technology services to global banks, insurance companies, asset owners, and regulators. The financing was provided by the State of Connecticut Department of Economic and Community Development (DECD) in connection with NewOak’s $13 million relocation project which established its credit services division, NewOak Credit Services, now located in the Matrix Corporate Center in Danbury, Connecticut. Under the terms of the loan, the company plans to create up to 50 jobs during its first year and up to 100 jobs within three years.
Former Dissident Shareholder Becomes Qualstar’s Interim CEO
Former Dissident Shareholder Becomes Qualstar’s Interim CEO
Steven Bronson, the investor who took control of Qualstar Corp. after a proxy fight, has been named its interim chief executive and president, the company announced Monday.
Bronson, a member of Qualstar’s board, was appointed to replace Larry Firestone, who became chief executive of the Simi Valley data tape storage and power supply manufacturer in June 2012.
Bronson immediately closed a Qualstar office that Firestone opened in Denver and is terminating the executives working there. The move will result in a savings of about $1 million, according to the company.
In June, Bronson and four other candidates were elected to the Qualstar board after longstanding complaints that the money-losing company was underperforming. Bronson and BKF Capital Group Inc., his Boca Raton, Fla.-based investment firm, are the second largest investors in the company, with an 18 percent stake.
For there to be a successful turnaround of the company, Bronson said expenses need to be controlled and reduced.
“The board (of directors) will continue to take the appropriate actions to right-size Qualstar, support its current and future business, build a solid foundation and preserve its liquidity base,” Bronson said, in a prepared statement.
Bronson also is chief executive of Interlink Electronics Inc., a Camarillo manufacturer of touch pads and mouses for computers and other electronic equipment used in industrial and consumer applications.
Shares closed up 1 cent, or a fraction of percent, to $1.41 on the Nasdaq.
By Business Journal Staff Monday, July 15, 2013
Pastore & Dailey Represent Joint Lead Arranger in $110 Million Lending Transaction
Pastore & Dailey successfully represented Stamford, Connecticut based client Bank Street Group LLC in its role as joint lead arranger for a $135 million senior secured financing closed by Alpheus Communications, LLC on Friday May 31, 2013. The financing comprised a $110 million term loan, $15 million delayed draw term loan and $10 million revolving credit facility. The financing solution also affords up to an additional $40 million in an accordion feature under certain conditions. The financing allows Alpheus to refinance its existing debt and creates a solid foundation for future growth. Alpheus is a leading provider of metro and regional fiber networking and data center solutions serving carrier and enterprise customers in Texas.