Mill City Ventures III Reports Strong Q1 Growth and Strategic Buyback Activity

Introduction

Mill City Ventures III, Ltd. (NASDAQ: MCVT) is a business development company headquartered in La Jolla, California. Founded in 2006, the firm provides short-term, high-interest lending and specialty finance solutions—commonly referred to as hard-money loans—on both secured and unsecured bases. Its objective is to generate returns through investment income and capital appreciation in privately held and small-capitalization public companies.

Corporate Structure and Management Experience

Mill City Ventures III operates under the Investment Company Act as a non-bank lender. While the exact employee count is not publicly disclosed, the company is overseen by a management team and board of directors:

• Douglas M. Polinsky, Chief Executive Officer since 2006, co-founded the company and has led Great North Capital Consultants, Inc. since 1994, advising on corporate transactions and direct investments.
• Joseph A. Geraci, Chief Financial Officer since 2006, has experience in business development, private placements, and fund management through Isles Capital, LLC and related advisory firms.
• Independent Directors include Laurence S. Zipkin (gaming and restaurant industries), Lyle Berman (gaming and retail), and Howard Liszt (marketing communications), each with extensive executive leadership and board experience.

Hard-money loans by Content Pixie

Developments and News

On May 13, 2025, Mill City Ventures III reported its financial results for the quarter ended March 31, 2025:

• Net increase in net assets resulting from operations rose to $451,746, up from $382,103 in Q1 2024.
• Net asset value per share increased to $3.23 from $3.09 at December 31, 2024.
• The company originated $3.25 million in new short-term real estate loans.
• Under an authorized buyback program, it repurchased 322,482 shares for approximately $630,000.

On June 24, 2025, a Schedule 13D filing disclosed that director Lyle Berman holds 315,556 shares—5.2% of outstanding common stock—with sole voting and dispositive power. The reduction in share count reflects the May 2025 buyback. Mill City Ventures III also submitted Form 8-K reports dated July 15, 2025 (Item 5.02) and July 22, 2025 (Item 3.01), covering executive changes and other current events.

As of July 25, 2025, the stock price was $3.34—an 80.54% increase—with 8,189,417 shares traded on NASDAQ.

Financial and Strategic Analysis

The first quarter results highlight an increase in investment income alongside credit performance. Key metrics for the trailing twelve months include:

• Revenue of $3.247 million
• Net margin of 38.11%
• Earnings per share of $0.19 (P/E ratio ~9.7)
• EBITDA of $1.252 million

Originating $3.25 million in new loans during Q1 demonstrates continued deal flow in the short-term real estate sector. NAV per share growth and the share repurchase program indicate management’s focus on enhancing shareholder value. The buyback—funded with excess liquidity—aimed to support per-unit NAV. Management commentary indicates an active loan pipeline and borrower demand through year-end 2025.

Market Position and Industry Context

Mill City Ventures III competes in the non-bank lending and specialty finance sector, often categorized with hard-money lenders and smaller business development companies. Its collateral-backed, nine-to-twelve-month loan maturities cater to borrowers facing tighter bank credit conditions. The firm sources transactions via private equity sponsors, investment bankers, brokers, and direct relationships with business owners. Regulatory and banking-sector shifts in 2025 have maintained demand for alternative credit providers, positioning the company within the private credit market.

tl;dr

On May 13, 2025, Mill City Ventures III reported Q1 net asset growth to $451,746 and NAV of $3.23 per share, with $3.25 million in new loan originations. The company repurchased 322,482 shares for $630,000. Director Lyle Berman disclosed a 5.2% holding on June 24, 2025. Shares traded at $3.34 on July 25, 2025, reflecting an 80.54% increase. Management expects continued loan demand and an active pipeline through 2025.