ComVest has extensive experience and networking resources, and has invested over $2 billion into more than 200 public and private companies around the world.
“As the adoption of iLabor continues to increase, we are excited to have ComVest as a majority stakeholder,” Michael Traina, ClearPoint chairman and CEO stated in the press release. “It is a true testament to our company and our business model that a billion dollar financial institution like ComVest is willing to invest in the Company and is interested in funding our growth.”
Gary E. Jaggard, CEO of ComVest, will serve on the company’s board of directors. Jaggard said that after careful review of ClearPoint’s operations and business model, ComVest is confidant in the company’s future.
“We consistently review each of our portfolio investments and we have been impressed by iLabor’s adoption among the nation’s largest staffing companies,” stated Jaggard. “ClearPoint’s value proposition of immediate revenue increase clearly rings true with their staffing company clients and we look forward to continuing to support the company and taking a more active role in its growth.”
The stake in ClearPoint was through a fully diluted basis through exercise of a warrant. ClearPoint issued the warrant to ComVest in connection with ComVest’s extension of the secured revolving credit facility to the Company on August 14, 2009. Per the agreement, ComVest obtained the right, in connection with certain events of default, to exercise its warrant for 51 percent of the fully-diluted ClearPoint common stock.
On February 9, 2010, ClearPoint received a notice of certain defaults from ComVest under its revolving credit agreement, including the company’s failure to pay ComVest approximately $168,000 of accrued interest and a loan modification fees, resulting in ComVest’s 51-percent stake.