Press release from Marketwire
Currency Exchange International Closes Transaction with U.S. Exchange House
Friday, March 28, 2014
Currency Exchange International Closes Transaction with U.S. Exchange House16:52 EDT Friday, March 28, 2014
TORONTO, ONTARIO--(Marketwired - March 28, 2014) - Currency Exchange International, Corp. (the "Company") (TSX:CXI)(OTCBB:CURN), further to its press release dated March 20, 2014, announces today that its subsidiaries, Currency Exchange International America Corp. and Currency Exchange International of Canada Corp., have closed the acquisition of certain assets of U.S. Exchange House, Inc. ("USEH") pertaining to the wholesale banknote operations located in the United States of America and Canada. CXI paid USD$2.35 million in cash on closing along with two additional contingent payments of up to USD$1.325 million payable on the first and second anniversary after closing. These additional payments will be based on the amount of revenue generated from the customers acquired. The assets acquired from USEH will be merged and integrated into the Company's current banknote business and will continue to use the Currency Exchange International, Corp. brand name. Operational efficiencies are expected by the Company's management due to the very similar business operations and overlap of back office functions and the hiring of some USEH currency trading staff. CXI expects to continue to grow its banknote business due to the increased customer base.
About U.S. Exchange House, Inc.
USEH operated its wholesale banknote and related businesses in Los Angeles and Toronto. Its quality service led to a portfolio of many loyal clients. USEH traders include a team of professionals with complementary skills and strength.
About Currency Exchange International, Corp.
The Company is in the business of providing a range of foreign currency exchange and related products and services in North America, including the Hawaiian Islands. Primary products and services include the exchange of foreign currencies, wire transfer payments, purchase and sale of foreign bank drafts and international traveler 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 services are provided in Canada by its wholly owned subsidiary, CXIC, based in Toronto, Canada through the use of CEIFX.
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, successful completion of the asset acquisition, continued growth of the Company's banknote business, increase in net revenues based on the acquisition, demand and market outlook for wholesale and retail foreign currency exchange products and services, proposed entry into the Canadian financial services industry, 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, volatile securities markets impacting security pricing in a manner unrelated to operating performance and impeding access to capital or increasing the cost of capital, and the regulatory approval process for a new Canadian Schedule I bank, as well as the factors identified throughout this press release and in the section entitled "Risks and Uncertainties" of the Company's Management's Discussion and Analysis for Three-Month Period Ended January 31, 2014. 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Currency Exchange International, Corp.
Randolph W. Pinna
President and Chief Executive Officer