Exhibit 99.1
First Montauk Obtains New Credit Facility
December 10, 2007 -- Red Bank, NJ -- First Montauk Financial Corp.
(OTCBB: FMFK)
announced today that it has closed on a Note Purchase Agreement
with AEFC-FMFK
Investment Corp. ("AEFC-IC") for an amount of up to $2,000,000. The
transaction
closed on December 7, 2007, and FMFK received an initial payment of
$1,000,000.
At the discretion of FMFK, an additional $1,000,000 may be drawn
down beginning
on February 1, 2008.
In conjunction with the initial funding, FMFK has issued to AEFC-IC
a $2,000,000
principal sum Secured Convertible Promissory Note (the "Note") of
which
$1,000,000 is outstanding at this time. The Note holder will
receive ten percent
interest and the Note is convertible into shares of FMFK common
stock at $0.35
per share beginning July 1, 2008 if not prepaid prior to such date.
The Note
matures on December 31, 2008, and is prepayable by FMFK at any time
prior to
July 1, 2008 subject to an escalating prepayment penalty tied to
the prepayment
date, if any. The Note contains anti-dilution protection in the
event that FMFK
raises capital from alternate sources during the term of the Note
at a
conversion price below $0.35 per share.
Victor K. Kurylak, President and CEO
