Advantex Signs Exclusive Sales and Marketing Agreement for Canada with RapidAdvance
12/6/2007 12:00:00 AM

NEWS RELEASE

 

 Advantex Signs Exclusive Sales and Marketing Agreement

for Canada with RapidAdvance

 

  • Advantex to provide sales and marketing to offer RapidAdvance’s working-capital financing to small and medium-sized businesses across Canada
  • Improved operations, strengthened financial health, enhanced core product offerings position Advantex for growth in revenue and profits, CEO tells shareholders

 

Toronto, December 6, 2007 – Advantex Marketing International Inc. (TSX: ADX), a leading specialist in merchant funding and loyalty marketing programs, is better positioned today than it has been for years to achieve revenue growth and improved profitability, Kelly E. Ambrose, President and Chief Executive Officer today told shareholders attending the company’s Annual and Special Meeting.

 

“During the past two years, we have made considerable progress on executing our plan to create a sustainable, profitable company,” said Mr. Ambrose.  “We have been focused on improving our financial strength, enhancing our core product offerings, working with CIBC to implement new programs to benefit cardholders, strengthening our organization and management team, and improving our systems and infrastructure.  The progress that we have made in each of these areas positions us to build on our improved financial performance of the past fiscal year.  We expect this will result in further revenue growth and future profitability.

 

“A part of our growth strategy is to consider opportunities that are complementary to our core business and that we expect will contribute to our financial performance.  As a result, we have just signed a multi-year agreement with RapidAdvance, LLC whereby we will act as its exclusive Canadian-based agent across Canada to sell and market its working-capital financing programs to small and mid-sized businesses.  In return, Advantex will earn fees for each new merchant funded by RapidAdvance with the opportunity to earn residual fees on renewals.  In the U.S., RapidAdvance has achieved a renewal rate for qualified customers of 85 percent,” Mr. Ambrose reported.

 

RapidAdvance, based in Bethesda, Maryland, has established itself in the United States as a leading direct provider of cash advance services to small and mid-sized businesses.  The company provides financing based on merchants’ purchasing credit card receivables.  Merchants’ needs for easy-to-obtain working capital have grown significantly in the United States and Canadian businesses are experiencing similar requirements.  RapidAdvance’s success has been due, in part, to its easy repayment term and streamlined underwriting process that facilitates financing decisions in as little as 24 hours.  Funding can be deposited in a merchant’s account within as little as two days. 

 

“Merchants of all kinds have been very enthusiastic about the financial services that RapidAdvance has been making available to them in the United States,” said Jeremy Brown, President of RapidAdvance.  “We believe that Canadian businesses also will be very interested in the working capital funding that we can provide them and are very pleased to have been able to partner with Advantex Marketing to introduce these service across Canada.  Advantex is well known to, and respected by, merchants across the country and has an extensive network of representatives that will be able to introduce our services to these businesses.”

 

At Advantex’s Annual and Special Meeting, shareholders voted to re-elect the current Board of Directors, re-appointed the company’s auditors, and approved the Shareholder Rights Plan and amending of the Stock Option Plan.

 

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.

 

About RapidAdvance, LLC

 

RapidAdvance, based in Bethesda, Maryland, is a leading provider of merchant cash advances to small and mid-sized business owners looking to obtain additional working capital.  Business merchants use RapidAdvance’s services to fund expansion, purchase equipment and inventory, pay off debt or leverage a seasonal opportunity.  Funding is quick and easy and does not require the traditional guarantees, liens or collateral associated with bank loans.  For more information about RapidAdvance’s business funding solutions, please call 877.467.2743 or visit www.RapidAdvance.com.

 

Forward-looking Statements

 

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.