ADVANTEX Signs Debt Financing Agreement to Grow Advance Purchase Marketing Program
12/18/2007 12:00:00 AM
Advance Purchase Marketing Program
Toronto, December 18, 2007 - Advantex Marketing International Inc. (TSX: ADX), a leading specialist in merchant funding and loyalty marketing programs, today announced that it has signed a three-year agreement that will provide funding for the company to grow its very popular Advance Purchase Marketing program.
Under the agreement signed with Montcap Financial Corporation, Advantex will be able to draw on at least $1.5 million for immediate deployment as cash advances to merchants participating in the Advance Purchase Marketing Program. Advantex also will have access to up to an additional $3.5 million as it expands the program by offering participation to retailers across
Advantex is the originator and leader of Advance Purchase Marketing in
“This new funding will enable Advantex to respond to the backlog of merchants who have applied to join our Advance Purchase Marketing Program,” said Kelly E. Ambrose, President and Chief Executive Officer. “Further, with this financing in place and access to the additional funds, we will be able to move ahead with our plans to rapidly grow the Advance Purchase Marketing Program. We see this program as a tremendously exciting opportunity for profitable growth for Advantex.”
“Advantex already has demonstrated the popularity of its innovative Advance Purchase Marketing Program with a broad variety of merchants,” said Fred Moss, President of Montcap. “We are very pleased to be able to partner with Advantex to help make it possible for them to offer the Advance Purchase Marketing Program to a rapidly growing number of businesses across
Under the agreement with Montcap, the facility will act similar to a line to Advantex; interest will be calculated daily on the amount outstanding and charged monthly at the per annum rate of 10 percent above a major Canadian bank’s prime rate. The three-year agreement will automatically renew for one-year periods unless either party gives termination notice.
Advantex said that it also is continuing with its advanced negotiations for a second debt financing opportunity that would consist of a private placement of non-convertible debentures to a maximum of $2.5 million in gross proceeds.
About Montcap Financial Corp.
Since 1990, Montcap Financial Corporation has been providing revolving facilities up to $10 million to small and medium-sized Canadian businesses in a variety of industries. In addition to account receivable funding, Montcap offers its clients inventory and equipment loans, as well as import financing through the guaranteeing of letters of credit. Headquartered in
About Advantex Marketing International Inc.
Advantex is a specialist in the marketing services industry, managing white-labeled rewards accelerator programs for major affinity groups through which their members earn bonus frequent flyer miles and/or other rewards on purchases at participating merchants. Under the umbrella of each program, Advantex provides merchants with marketing, customer incentives, and secured future sales through its Advance Purchase Marketing model. Advantex partners include more than 700 restaurants, online retailers, golf courses, small inns and resorts, and major organizations, including CIBC, United Airlines, Delta Airlines, Alaska Airlines, and Lufthansa Airlines. Advantex is traded on the Toronto Stock Exchange under the symbol "ADX". For additional information on Advantex, please visit www.advantex.com.
This news release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding financial and business prospects and financial outlook) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks, uncertainties and assumptions that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in general economic and market conditions, changes to regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the future, and delays in finalizing retail contract. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
For further information:
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