Item 8.01 - Other Events.
As previously disclosed in a Current Report on Form 8-K filed on April 30, 2009,
on April 26, 2009, NovaStar Financial, Inc. entered into a Securities Purchase
Agreement (the "Purchase Agreement") with Advent Financial Services, LLC
("Advent") and Mark A. Ernst to acquire 70% of the fully diluted membership
interests in Advent in exchange for an initial payment of $2,000,000 and, upon
Advent's achievement of certain financial metrics for the twelve months ended on
April 30, 2010, an additional payment of $2,000,000. The Purchase Agreement
required the parties to make certain representations, warranties, covenants and
contained other closing conditions. On May 15, 2009, the closing conditions set
forth in the Purchase Agreement were satisfied and the parties thereto closed
the transaction.
