Business
Advantex Completes $2 Million Private Placement Financing of Units to Grow Advance Purchase Marketing Program
- Deal is Advantex's second financing this month to support growth of popular program - Expects s...
About this update from Advantex Marketing International Inc.
[{"type":"text","content":"\n\n\n\n- Deal is Advantex's second financing this month to support growth of\n popular program\n- Expects shortly to close additional placement of Units to private\n investors\n\n\nADX: TSX\n\n\nTORONTO, Dec. 24 /CNW/ - Advantex Marketing International Inc.\n(TSX: ADX), a leading specialist in merchant funding and loyalty marketing\nprograms, today announced that it has completed the private placement of\n$2 million of Units comprising $1,000 face value secured non-convertible\ndebentures and 1,975 common share purchase warrants.\n\n\nEach warrant will be exercisable to acquire one common share of Advantex\nMarketing at $0.06 per share during the three-year term of the debentures. The\ndebentures will yield 14.0 percent annually, payable quarterly. The Units were\npurchased by a Toronto-based portfolio management firm and private investors.\nAdvantex said that it expects shortly to close in January the sale to private\ninvestors of additional Units for between $0.1 million and $0.7 million.\n\n\nThe agreement is the second financing arrangement to fund the growth of\nits popular Advance Purchase Marketing program that Advantex recently has\nannounced. On December 18, 2007, the company announced a three-year agreement\nwith Montcap Financial Corporation under which Advantex will be able to draw\non at least $1.5 million for immediate deployment as cash advances to\nmerchants participating in the Advance Purchase Marketing Program. Advantex\nalso said that it will have access to up to an additional $3.5 million as it\nexpands the program by offering participation to retailers across Canada.\nAdvantex estimates that there are about 100,000 retailers in Canada that would\nqualify for the program.\n\n\nAdvantex is the originator and leader of Advance Purchase Marketing in\nCanada. Under its Advance Purchase Marketing Program, operated with the Visa\ndivision of CIBC, Advantex purchases transaction credits from merchants on\nbehalf of Advantex's customers (premium CIBC Visa cardholders). Merchants are\nthus able to obtain cash in advance for working capital based on future sales.\nAs cardholders make purchases at participating merchants, Advantex collects\nthe funds from the transactions and the merchant's transaction credit balance\ndeclines.\n\n\n"Our ability to proceed with this private placement is indicative that\ninvestors...