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ORLANDO, Fla., Sept. 09, 2019 (GLOBE NEWSWIRE) -- Currency Exchange International, Corp. (TSX:CXI) (OTCBB:CURN), a full service foreign exchange technology and services provider, is pleased to announce the completion of its acquisition of eZforex.com, Inc. (“eZforex”), a Longview, Texas-based privately-held foreign currency and technology business which has wholesale banknote financial institution customers located throughout the United States, by having acquired 100% of the issued and outstanding shares in the capital stock of eZforex pursuant to the terms of a Share Purchase Agreement that was both executed and completed by the parties to such agreement effective as of September 6, 2019. The purchase price is US$4,250,000 inclusive of US$1,000,000 in net positive working capital left in eZforex on completion of the transaction to facilitate the seamless continuation of the operation of the eZforex business in the ordinary course immediately after closing.
The acquisition of eZforex will complement CXI’s existing client base and wholesale banknote operations. eZforex is a leading provider of foreign exchange solutions to financial institutions, which rely on eZforex's integrated turnkey solutions to manage their foreign currency needs. The customers of eZforex include a total of approximately 4000 transacting locations represented by Banks, Bankers’ Banks (being financial institutions that provide financial services to community banks in the U.S.), Credit Unions and Corporate Credit Union groups. Net revenues from this client base were approximately US $1.7 million (audited) in the year ended December 31, 2018. In the first six months of 2019, ended June 30, 2019, net revenues were USD $1.3 million (unaudited). CXI’s management believes that this transaction will be accretive to its annual EBITDA results, starting in 2020. It is expected that approximately one-half of the staff of eZforex will be retained.
“We are proud to bring eZforex into the international financial services group that is led by Currency Exchange International, Corp and offer EZ’s client base the expanded international services available by joining with CXI” said Randolph Pinna, President and Chief Executive Officer of CXI. “The core financial institution market eZforex serves will continue to enjoy professional service, innovative technology, and benefit from additional back office support and access to additional foreign exchange based services to bring additional value and convenience to their end consumers.”
Operational efficiencies are expected by CXI management due to the overlapping financial institution market and services. eZforex has been a longstanding client of CXI, and CXI is very familiar with both eZforex management and its client base. The transaction will be financed from CXI’s available cash resources and will not require additional external financing.
Q3 2019 Financial Results Release Date & Conference Call
The Company plans to report its Q3 2019 Financial Results on Wednesday September 11, 2019 after market close. Management will host a conference call on Thursday September 12, 2019 at 8:30 AM (EST), to discuss the Q3 Financial Results and provide further detail related to the acquisition. To participate in or listen to the conference call, please dial the appropriate number:
Toll Free: 1 (855) 336-7594
Conference ID number: 3768807
About Currency Exchange International, Corp.
The Company is in the business of providing a range of foreign exchange technology and processing services in North America. Primary products and services include the exchange of foreign currencies, wire transfer payments, Global EFTs, purchase and sale of foreign bank drafts and international travelers’ cheques, and foreign cheque clearing. Related services include the licensing of proprietary FX software applications delivered on its web-based interface, www.ceifx.com (“CEIFX”), and licensing retail foreign currency operations to select companies in agreed locations.
The Company’s wholly-owned Canadian subsidiary, Exchange Bank of Canada, based in Toronto, Canada, provides foreign exchange and international payment services in Canada through the use of its proprietary software – www.ebcfx.com.
For further information please contact:
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release includes forward-looking information within the meaning of applicable securities laws. This forward-looking information includes, or may be based upon, estimates, forecasts and statements as to management’s expectations with respect to, among other things, demand and market outlook for wholesale and retail foreign currency exchange products and services, future growth, the timing and scale of future business plans, results of operations, performance, and business prospects and opportunities. Forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “preliminary”, “project”, “will”, “would”, and similar terms and phrases, including references to assumptions.
Forward-looking information is based on the opinions and estimates of management at the date such information is provided, and on information available to management at such time. Forward-looking information involves significant risks, uncertainties and assumptions that could cause the Company’s actual results, performance or achievements to differ materially from the results discussed or implied in such forward-looking information. Actual results may differ materially from results indicated in forward-looking information due to a number of factors including, without limitation, the competitive nature of the foreign exchange industry, currency exchange risks, the need for the Company to manage its planned growth, the effects of product development and the need for continued technological change, protection of the Company’s proprietary rights, the effect of government regulation and compliance on the Company and the industry in which it operates, network security risks, the ability of the Company to maintain properly working systems, theft and risk of physical harm to personnel, reliance on key management personnel, global economic deterioration negatively impacting tourism, and volatile securities markets impacting security pricing in a manner unrelated to operating performance and impeding access to capital or increasing the cost of capital, as well as the factors identified throughout this press release and in the section entitled “Risks Factors” of the Company’s Management’s Discussion and Analysis for Year Ended October 31, 2018. The forward-looking information contained in this press release represents management’s expectations as of the date hereof (or as of the date such information is otherwise stated to be presented), and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this press release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this press release.