Business
Advantex in Advanced Negotiations for Possible Debt Financings to Support Growth Plans
Debt financings would enable Advantex to meet backlog of merchants wishing to join its Advance Pu...
About this update from Advantex Marketing International Inc.
[{"type":"text","content":"\n\n\n\nDebt financings would enable Advantex to meet backlog of merchants\n\n\nwishing to join its Advance Purchase Marketing Program\n\n\nADX: TSX\n\n\nTORONTO, Nov. 27 /CNW/ - Advantex Marketing International Inc.\n(TSX: ADX), a leading specialist in merchant funding and loyalty marketing\nprograms, today announced that it is in advanced negotiations regarding credit\nfinancing opportunities to support its strategic growth plans, including the\ngrowth of its Advance Purchase Marketing Program.\n\n\nUnder the Advance Purchase Marketing Program, which it operates with the\nVisa division of CIBC, Advantex purchases transaction credits from merchants\non behalf of Advantex's customers (premium CIBC Visa cardholders). This\nprovides merchants with cash in advance for working capital based on future\nsales. As cardholders make purchases at participating merchants, Advantex\ncollects the funds from the transactions and the merchant's transaction credit\nbalance declines. Advantex is the originator and leader of Advance Purchase\nMarketing in Canada.\n\n\n"Our Advance Purchase Marketing Program has proven so very popular with a\nbroad spectrum of merchants in Canada that we require additional capital to\nfund its growth," said Kelly E. Ambrose, President and Chief Executive\nOfficer. "As we indicated in our recent announcement of our fiscal 2008\nfirst-quarter financial results, we have a backlog of merchants wishing to\njoin the Advance Purchase Marketing Program. The financings that we are\nnegotiating will enable us to add those who have applied to join the program\nand will enable us to more aggressively pursue additional merchants."\n\n\nOne of the two potential debt financings consists of access to a funding\nline of up to $5 million that can be drawn on as required to support cash\nadvances to merchants. The other potential debt financing would be in the form\nof debenture to be offered on a private placement basis to raise gross\nproceeds of up to $2.5 million. Additional terms of such financings will be\nannounced at such time as Advantex has entered into a definitive agreement to\nproceed with either or both of them.\n\n\nAbout Advantex Marketing International Inc.\n\n\nAdvantex is a specialist in the marketing services industry, managing\nwhite-labeled rewards accelerator programs for major affinity gro...