Business
Frontera Investment Announces Acquisition of Store in Sunnyvale California
Frontera Investment Announces Acquisition of Store in Sunnyvale California.
About this update from Frontera Investment Inc
[{"type":"text","content":"\nFrontera Investment, Inc., (www.fronterainvestment.com) (OTC: FRNV) today announced the acquisition of a store in Sunnyvale California, operating under the name of Check2Cash.\n \nFrontera is an alternative financial services company that serves the large and fast-growing low-cost consumer finance market. The company uses advanced technology and business processes to offer competitive prices on a wide range of financial products and services, including check cashing, loans (payday and gold jewelry loans) and money transfers.\n \nTotal purchase price was approximately $1.0 million plus 85% of the existing payday advances outstanding. The purchase price was paid from proceeds from the sale of Series A Preferred Stock. The closing occurred today, November 5, 2012.\n \nFrontera previously announced two new transactions that will provide working capital necessary to acquire existing stores and grow the gold jewelry loan business. The first transaction was a new $5 million senior credit facility from Salus Capital Partners (www.saluscapital.com). The second transaction was a $5.0 million preferred stock investment from MRC Capital Group (www.mrccapital.com), an existing investor in Frontera. \n \n“We are very pleased to announce the addition of this profitable store in Sunnyvale” said Gilbert Partida, Frontera’s president and CEO. “This successful store will immediately increase our payday advance market share in California and add operating cash flow”. Furthermore, “we successfully obtained a pawn license for this location which will allow us to add the profitable gold jewelry loan service at this store and significantly accelerate the payback on our investment.”\n \nForward-Looking Statements:\nSuch forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete expansion within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; ability to raise capital to support its growth strategy; changes in business strategy; and the ...