Security National Financial Corp. completed on June 1 a stock purchase transaction to buy all the outstanding common shares of Beta Capital Corp.
Beta Capital, solely owned by Ronald Maxson, runs a factoring business with the principal purpose of providing funding for funeral homes and mortuaries.
Security National Financial paid Maxson the purchase consideration equal to the sum of $890,000 in cash plus the accounts receivable value of about $2.5 million, representing the total amount of Security National Financial's outstanding receivables as of the closing date of June 1, for a total closing payment of about $3.4 million.
From the closing payment, a holdback amount equal to $175,000 was deposited into an interest-bearing escrow account to be held for a period of 18 months from the closing date to pay off any uncollected accounts receivable and other liabilities of Beta Capital as of the closing date.
At closing, Security National Financial and Beta Capital signed a noncompetition and confidentiality agreement with Maxson. Security National Financial and Beta Capital also entered into a lease agreement with Maxson for the use of the office space currently occupied by Beta Capital in Portsmouth, Va.
