ADVANTEX Obtains Additional Funds to Finance Growth of its Advance Purchase Marketing Program
1/31/2008 12:00:00 AM

  NEWS RELEASE

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 2007, Advantex has immediate access to $4.2 million to grow its popular funding program for Canadian merchants

Toronto, January 31, 2008 - Advantex Marketing International Inc. (TSX: ADX), a leading specialist in merchant funding and loyalty marketing programs, today announced that it has raised $0.665 million through the sale of an additional 665 Units pursuant to the financing previously announced December 24, 2007. 

Each Unit comprises $1,000 face value secured non-convertible debentures and 1,975 common share purchase warrants. Each warrant is exercisable to acquire one common share of Advantex Marketing at $0.06 per share during a three-year period. The debentures will yield 14.0 percent annually, payable quarterly, and mature on December 31, 2010. This transaction represents the second and final closing of the financing announced on December 24, 2007. Advantex raised total aggregate gross proceeds of $2.665 million through these financings.

With the completion of this financing, Advantex has gained immediate access to $4.2 million of funds to finance the growth of its popular Advance Purchase Marketing Program. On December 18, 2007, Advantex announced a three-year agreement with Montcap Financial Corporation under which Advantex can 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 Canada. Advantex estimates that there are about 100,000 retailers in Canada that would qualify for the program. 

Advantex is the originator and leader of Advance Purchase Marketing in Canada. Under this program, operated with the Visa division of CIBC, Advantex purchases transaction credits from merchants on behalf of Advantex’s customers (premium CIBC Visa cardholders). Merchants are thus able to obtain cash in advance for working capital based on future sales. As cardholders make purchases at participating merchants, Advantex collects the funds from the transactions and the merchant’s transaction credit balance declines. 

“We are very encouraged by the reception from both investors and merchants to our Advance Purchase Marketing Program,” said Kelly E. Ambrose, President and Chief Executive Officer. “The funds that we have raised in the past two months will enable us to accelerate the growth of the Advance Purchase Marketing Program this year, in line with our strategic growth plan.”

Certain of Advantex’s directors and/or officers subscribed for an aggregate of 110 Units pursuant to the second closing of the financing. As a consequence, the participation of such directors and/or officers in the financing constitutes a "related party transaction" that is subject to Ontario Securities Commission Rule 61-501 and Regulation Q-27 of the Autorité des marchés financiers. Advantex completed each such subscription within 21 days of the date the board of directors of Advantex approved the participation of such directors and/or officers in the financing, as part of the closing of Advantex’s larger offering of Units.

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 Advantex Marketing International Inc. (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), including, with limitation, with respect to the expansion of the Company’s Advance Purchase Marketing Program to retailers across Canada, 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 the retail contract with CIBC.  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:

Mukesh Sabharwal

Vice-President, Finance

Tel: (416) 481-5657, ext. 249

E-mail: Mukesh.sabharwal@advantex.com