DGSE Companies, Inc. Announces Negotiations to Acquire Elemetal Recycling, LLC
February 16 2017 - 4:18PM
Business Wire
DGSE Companies, Inc. (NYSE MKT: DGSE) (“DGSE” or the
“Company”), a leading wholesaler and retailer of jewelry, diamonds,
fine watches, and precious metal bullion and rare coin products,
today announced that it has entered into discussions with
Elemetal, LLC (“Elemetal”) to acquire the business of Elemetal
Recycling, LLC (“Recycling”), a subsidiary of Elemetal.
No agreement has been reached, and there can be no assurance
that an agreement will be reached.
“This is part of DGSE’s goal to seek acquisitions with potential
long-term rewards in relatively diversified revenue streams,”
stated John Loftus, DGSE’s President, Chairman and Chief Executive
Officer. “We want to pursue acquisition opportunities in select
high-growth industries to create value for our shareholders.
“Recycling is a de-manufacture and refurbishment processor of
electronics in the aftermarket supply chain. It operates
principally from a 175,000 square-foot facility in Carrollton,
Texas that is designed to process precious-metal-bearing products
from a host of industries. Recycling conforms to ISO 9001:2008, ISO
14001:2004 and R2 practices, which we believe makes it a top choice
for disposing of IT and electronics assets,” said Loftus.
Elemetal currently holds an approximately 49% interest in
DGSE.
Retail Update
Following the mid-December 2016 leadership transition, we feel
that DGSE has made extraordinary gains in the retail side of our
business, which we believe will guide us toward higher revenues,
and regained profitability and competitiveness. Our retail stores
offer value and liquidity to those seeking to buy, sell or trade
jewelry, watches, diamonds or coins.
Dallas Gold & Silver Exchange has completed its planned
consolidation of three smaller stores into one superstore near the
epicenter of Dallas retail at I-635 and Preston Road and entered
into a services agreement to implement a point-of-sale system to
improve efficiency and deliver a better customer experience. DGSE
also has relocated its administrative team to this Dallas location,
streamlined operations, decreased office staff and increased sales
staff. The closer proximity to our clients allows the executive
team to be a part of every interaction and every purchase, which we
believe will help us successfully implement our new operational
strategies, focus our attention on satisfying customers, and return
to our core strengths. We believe these organizational and
leadership changes will contribute to a winning strategy for our
business going forward.
About DGSE Companies,
Inc.
DGSE Companies, Inc. wholesales and retails jewelry, diamonds,
fine watches, and precious metal bullion and rare coin products
through its Charleston Gold & Diamond Exchange and Dallas Gold
& Silver Exchange operations. DGSE also owns Fairchild
International, Inc., one of the largest vintage watch wholesalers
in the country. In addition to its retail facilities in South
Carolina and Texas, the Company operates websites which can be
accessed at www.dgse.com, and www.cgdeinc.com. Real-time price
quotations and real-time order execution in precious metals are
provided on another DGSE website at www.USBullionExchange.com.
Wholesale customers can access the full vintage watch inventory
through the restricted site at www.FairchildWatches.com. The
Company is headquartered in Dallas, Texas and its common stock
trades on the NYSE MKT exchange under the symbol “DGSE.”
This press release includes statements which may constitute
“forward-looking” statements, usually containing the words
“believe,” “seek,” “estimate,” “project,” “expect,” “will” or
similar expressions. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements, including with respect to the
Company’s potential acquisition of Recycling, which is subject to
further negotiations with Elemetal, the satisfactory completion of
due diligence, the availability of funds to purchase Recycling, the
timing of the transaction and benefits expected to be derived
therefrom. Other factors that would cause or contribute to such
differences include, but are not limited to, the risks detailed in
the Company’s periodic report filings with the Securities and
Exchange Commission. Forward-looking statements represent the
Company’s expectations and beliefs concerning future events based
on information available to the Company as of the date of this
release. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions
or changes after the date of this release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170216006156/en/
DGSE Companies, Inc.Bret Pedersen,
972-587-4024bpedersen@dgse.com
DGSE Companies (AMEX:DGSE)
Historical Stock Chart
From Aug 2024 to Sep 2024
DGSE Companies (AMEX:DGSE)
Historical Stock Chart
From Sep 2023 to Sep 2024