- Deal is Advantex's second financing this month to support growth of
- Expects shortly to close additional placement of Units to private
TORONTO, Dec. 24 /CNW/ - Advantex Marketing International Inc.
(TSX: ADX), a leading specialist in merchant funding and loyalty marketing
programs, today announced that it has completed the private placement of
$2 million of Units comprising $1,000 face value secured non-convertible
debentures and 1,975 common share purchase warrants.
Each warrant will be exercisable to acquire one common share of Advantex
Marketing at $0.06 per share during the three-year term of the debentures. The
debentures will yield 14.0 percent annually, payable quarterly. The Units were
purchased by a Toronto-based portfolio management firm and private investors.
Advantex said that it expects shortly to close in January the sale to private
investors of additional Units for between $0.1 million and $0.7 million.
The agreement is the second financing arrangement to fund the growth of
its popular Advance Purchase Marketing program that Advantex recently has
announced. On December 18, 2007, the company announced a three-year agreement
with Montcap Financial Corporation under which Advantex will be able to draw
on at least $1.5 million for immediate deployment as cash advances to
merchants participating in the Advance Purchase Marketing Program. Advantex
also said that it will have access to up to an additional $3.5 million as it
expands the program by offering participation to retailers across Canada.
Advantex estimates that there are about 100,000 retailers in Canada that would
qualify for the program.
Advantex is the originator and leader of Advance Purchase Marketing in
Canada. Under its Advance Purchase Marketing Program, operated with the Visa
division of CIBC, Advantex purchases transaction credits from merchants on
behalf of Advantex's customers (premium CIBC Visa cardholders). Merchants are
thus able to obtain cash in advance for working capital based on future sales.
As cardholders make purchases at participating merchants, Advantex collects
the funds from the transactions and the merchant's transaction credit balance
"Our ability to proceed with this private placement is indicative that
investors recognize the great, but still largely untapped, growth potential
for our Advance Purchase Marketing program," said Kelly E. Ambrose, President
and Chief Executive Officer. "This is another positive step forward for
Advantex and the execution of our growth strategies to create value for our
shareholders. It also will be good news for a broad range of merchants across
Canada to whom we will now be able to offer participation in this advance cash
About Advantex Marketing International Inc.
Advantex is a specialist in the marketing services industry, managing
white-labeled rewards accelerator programs for major affinity groups through
which their members earn bonus frequent flyer miles and/or other rewards on
purchases at participating merchants. Under the umbrella of each program,
Advantex provides merchants with marketing, customer incentives, and secured
future sales through its Advance Purchase Marketing model. Advantex partners
include more than 700 restaurants, online retailers, golf courses, small inns
and resorts, and major organizations, including CIBC, United Airlines, Delta
Airlines, Alaska Airlines, and Lufthansa Airlines. Advantex is traded on the
Toronto Stock Exchange under the symbol "ADX". For additional information on
Advantex, please visit www.advantex.com.
This news release contains certain "forward-looking statements". All
statements, other than statements of historical fact, that address activities,
events or developments that Advantex Marketing International Inc. ("the
Company") believes, expects or anticipates will or may occur in the future
(including, without limitation, statements regarding financial and business
prospects and financial outlook), including, with limitation, with respect to
the expansion of the Company's Advance Purchase Marketing Program to retailers
across Canada, are forward-looking statements. These forward-looking
statements reflect the current expectations or beliefs of the Company based on
information currently available to the Company. Forward-looking statements are
subject to a number of risks, uncertainties and assumptions that may cause the
actual results of the Company to differ materially from those discussed in the
forward-looking statements, and even if such actual results are realized or
substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on the Company. Factors that could cause
actual results or events to differ materially from current expectations
include, among other things, changes in general economic and market
conditions, changes to regulations affecting the Company's activities,
uncertainties relating to the availability and costs of financing needed in
the future, and delays in finalizing the retail contract with CIBC. Any
forward-looking statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not guarantees of
future performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.
For further information:
For further information: Mukesh Sabharwal, Vice-President, Finance, Tel:
(416) 481-5657, ext. 249, E-mail: Mukesh.firstname.lastname@example.org