Business
CCUR Holdings Signs Letter of Intent to Acquire 80% Interest in LuxeMark Capital
CCUR Holdings Signs Letter of Intent to Acquire 80% Interest in LuxeMark Capital.
About this update from Ccur Holdings Inc
[{"type":"text","content":"LuxeMark is New Entrant in Rapidly Growing Merchant Cash Advance Financing SegmentDULUTH, GA / ACCESSWIRE / October 2, 2018 / CCURHOLDINGS, INC. (OTCQB: CCUR) today announced that it has entered into a letter of intent (LOI) to acquire an 80 percent membership interest in LuxeMark Capital, LLC, a privately held firm focused on the rapidly growing merchant cash advance (MCA) sector of the finance industry that provides financing to small and medium-sized businesses. LuxeMark provides syndication capital or leverage to select funding companies within the sector and hopes to expand its business-to-business strategy by increasing the number of qualified funders to which it provides capital nationwide.Under the terms of the LOI, CCUR will acquire the membership interest for a combination of up to $6 million in cash, and options and stock appreciation rights for up to approximately 458,000 shares of CCUR equity, each payable over four years and subject to the achievement of prescribed financial performance milestones by LuxeMark. Additionally, CCUR will commit up to $10 million of syndication capital under a separate agreement with LuxeMark, which amount shall be placed by LuxeMark with its qualified funders. The acquisition and availability of syndication capital are subject to a number of conditions including the negotiation of definitive documentation and completion of CCUR's due diligence investigation to CCUR's satisfaction during a 120-day exclusivity period.\"Our proposed transaction with LuxeMark presents CCUR Holdings with the potential to prudently generate two revenue streams,\" stated Wayne Barr, Executive Chairman & CEO. \"First, by virtue of our 80 percent membership interest in the LLC, we would receive our pro-rated portion of the fee income earned by LuxeMark on its syndicators' invested capital. In addition, it is our expectation that the $10 million CCUR makes available as a LuxeMark syndicator will earn generate very attractive returns for CCUR,\" Mr. Barr concluded.MCA funding companies provide funds to businesses in exchange for a percentage of future sales, and the merchant agrees to sell a fixed amount of future sales at a discount at the time of the transaction. In 2017, MCA financings exceeded $15 billion and over the past four years have generated a CAGR of 125%. There are a number of active participants...