Daily Archives: October 10, 2013

MOUNT LAUREL, N.J., Oct. 9,2013 /PRNewswire/ --Freedom Mortgage Corporation, a national mortgage lender licensed in 50 states, announced today the closing of the initial public offering of 6,500,000 shares of common stock of its strategic alliance partner, Cherry Hill Mortgage Investment Corporation (CHMI), at a public offering price of $20.00 per share.

Cherry Hill Mortgage Investment Corporation is a residential real estate finance company that acquires, invests in and manages residential mortgage assets in the United States. Cherry Hill Mortgage Investment Corporation is externally managed and advised by Cherry Hill Mortgage Management, LLC, which is an affiliate of Freedom Mortgage Corporation.

Cherry Hill Mortgage Investment Corporation used a portion of the proceeds of the offering, together with additional proceeds from the sale of an additional 1,000,000 shares of common stock at the public offering price in a concurrent private placement, to acquire interests in mortgage servicing rights, from Freedom Mortgage.

A registration statement relating to the shares sold by Cherry Hill Mortgage Investment Corporation in the offering was declared effective by the Securities and Exchange Commission on September 30, 2013. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Freedom MortgageFreedom Mortgage Corporation is a national, full service mortgage banker with wholesale, retail, commercial, correspondent and servicing operations. The company is licensed in all 50 states, DC and Puerto Rico. Freedom Mortgage maintains an A+ rating with the Better Business Bureau and is known for using the most advanced technologies and providing world-class service to its clients, borrowers and partners. The company was founded in 1990 and is headquartered in Mount Laurel, New Jersey. For more information, please visit http://www.FreedomMortgage.com.

PRESS CONTACTS:Jeri Yoshida Strategic Vantage Mortgage Public Relations (310) 396-8813 JeriYoshida@StrategicVantage.com

Audrey Shapiro Director of Public Relations, Freedom Mortgage Corporation (856) 380-9073 Audrey.Shapiro@FreedomMortgage.com

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Freedom Mortgage Corporation Announces Closing of Initial Public Offering of its Strategic Alliance Partner

Mitchell Stern, Freedom's chief executive from 2010 to 2012, and Mark McEachen, its chief financial officer during that time, stayed with the company after it was acquired by entrepreneur Aaron Kushner in July 2012.

The executives said in an arbitration filing that they agreed to postpone their severance payments $3.3 million to Stern and $1.2 million to McEachen because of the company's "precarious finances." Freedom fired them in June but has refused to make good on its promise to pay their deferred severances, they said.

In September, Stern and McEachen filed a petition in Los Angeles County Superior Court seeking to place a $4.5-million lien against Freedom's assets, a step that would help them collect any money they are awarded in arbitration.

Jeffrey B. Valle, the executives' attorney, said plaintiffs typically seek such liens when there are questions about a company's financial health. He declined to discuss Freedom's financial condition.

Kushner said in a statement that the company intends to vigorously defend itself, calling the executives' claims "groundless and without merit." He said Freedom "has asserted clear claims against the former executives based on misconduct before the sale of the newspaper business."

He also said there is no cause for concern about the company's finances.

"Freedom Communications is in strong financial condition with strong financial partners," Kushner said in the statement.

Since acquiring the Register, Kushner has bucked an industry-wide trend of downsizing at U.S. newspapers, doubling the newspaper's staff of reporters and editors, adding weekly sections and launching a new newspaper in Long Beach.

Although many publishers have placed a new emphasis on their digital businesses, in some cases cutting back home delivery, Kushner has added pages and placed a priority on print.

Kushner has said the company is profitable but has declined to provide details. In August, he told employees that the company's financial performance fell short of expectations in the second quarter. In January, the company stopped matching employees' 401(k) contributions.

Read more from the original source:
2 former top execs of OC Register owner seek $4.5 million in severance