Business
Advantex Obtains Additional Funds to Finance Growth of its Advance Purchase Marketing Program
- Sale of Additional Units raises $0.7 million - Combined with financings completed in December 2...
About this update from Advantex Marketing International Inc.
[{"type":"text","content":"\n\n\n\n- Sale of Additional Units raises $0.7 million\n- Combined with financings completed in December 2007, Advantex has\n immediate access to $4.2 million to grow its popular funding program\n for Canadian merchants\n\n\nADX: TSX\n\n\nTORONTO, Jan. 31 /CNW/ - Advantex Marketing International Inc. (TSX:\nADX), a leading specialist in merchant funding and loyalty marketing programs,\ntoday announced that it has raised $0.665 million through the sale of an\nadditional 665 Units pursuant to the financing previously announced\nDecember 24, 2007.\n\n\nEach Unit comprises $1,000 face value secured non-convertible debentures\nand 1,975 common share purchase warrants. Each warrant is exercisable to\nacquire one common share of Advantex Marketing at $0.06 per share during a\nthree-year period. The debentures will yield 14.0 percent annually, payable\nquarterly, and mature on December 31, 2010. This transaction represents the\nsecond and final closing of the financing announced on December 24, 2007.\nAdvantex raised total aggregate gross proceeds of $2.665 million through these\nfinancings.\n\n\nWith the completion of this financing, Advantex has gained immediate\naccess to $4.2 million of funds to finance the growth of its popular Advance\nPurchase Marketing Program. On December 18, 2007, Advantex announced a\nthree-year agreement with Montcap Financial Corporation under which Advantex\ncan draw on at least $1.5 million for immediate deployment as cash advances to\nmerchants participating in the Advance Purchase Marketing Program. Advantex\nalso will have access to up to an additional $3.5 million as it expands the\nprogram by offering participation to retailers across Canada. Advantex\nestimates that there are about 100,000 retailers in Canada that would qualify\nfor the program.\n\n\nAdvantex is the originator and leader of Advance Purchase Marketing in\nCanada. Under this program, operated with the Visa division of CIBC, Advantex\npurchases transaction credits from merchants on behalf of Advantex's customers\n(premium CIBC Visa cardholders). Merchants are thus able to obtain cash in\nadvance for working capital based on future sales. As cardholders make\npurchases at participating merchants, Advantex collects the funds from the\ntransactions and the merchant's transaction credit balance declines.\n\n\n"We are very encouraged b...