TORONTO, Dec. 18 /CNW/ - Advantex Marketing International Inc. (TSX:
ADX), a leading specialist in merchant funding and loyalty marketing programs,
today announced that it has signed a three-year agreement that will provide
funding for the company to grow its very popular Advance Purchase Marketing
Under the agreement signed with Montcap Financial Corporation, 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 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
"This new funding will enable Advantex to respond to the backlog of
merchants who have applied to join our Advance Purchase Marketing Program,"
said Kelly E. Ambrose, President and Chief Executive Officer. "Further, with
this financing in place and access to the additional funds, we will be able to
move ahead with our plans to rapidly grow the Advance Purchase Marketing
Program. We see this program as a tremendously exciting opportunity for
profitable growth for Advantex."
"Advantex already has demonstrated the popularity of its innovative
Advance Purchase Marketing Program with a broad variety of merchants," said
Fred Moss, President of Montcap. "We are very pleased to be able to partner
with Advantex to help make it possible for them to offer the Advance Purchase
Marketing Program to a rapidly growing number of businesses across Canada. We
hope that this will be the beginning of a long, mutually beneficial
Under the agreement with Montcap, the facility will act similar to a line
to Advantex; interest will be calculated daily on the amount outstanding and
charged monthly at the per annum rate of 10 percent above a major Canadian
bank's prime rate. The three-year agreement will automatically renew for
one-year periods unless either party gives termination notice.
Advantex said that it also is continuing with its advanced negotiations
for a second debt financing opportunity that would consist of a private
placement of non-convertible debentures to a maximum of $2.5 million in gross
About Montcap Financial Corp.
Since 1990, Montcap Financial Corporation has been providing revolving
facilities up to $10 million to small and medium-sized Canadian businesses in
a variety of industries. In addition to account receivable funding, Montcap
offers its clients inventory and equipment loans, as well as import financing
through the guaranteeing of letters of credit. Headquartered in Montreal,
Quebec, Montcap is a wholly owned subsidiary of Accord Financial Corp. (TSX:
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 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) 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 retail contract. 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.email@example.com