DGSE Companies, Inc. Enters into Agreement with Elemetal and NTR Metals
June 21 2016 - 9:01AM
Business Wire
DGSE Companies, Inc. (“DGSE” or the “Company”) (NYSE MKT: DGSE)
entered into a stock purchase agreement (the “Purchase Agreement”)
on June 20, 2016 with Elemetal, LLC (“Elemetal”), and NTR Metals,
LLC (“NTR”), pursuant to which (i) DGSE agreed to sell and issue to
NTR shares of Common Stock at a stock price of $0.41 per share in
exchange for the cancellation and forgiveness of all amounts
outstanding under that certain Loan Agreement between DGSE and NTR
dated July 19, 2012 and an associated $7,500,000 Revolving Credit
Note of the same date executed by DGSE in favor of NTR (which
indebtedness and accrued interest as of June 17, 2016 was
$2,416,428.35), and (ii) DGSE agreed to sell and issue to Elemetal
8,536,585 shares of Common Stock at a stock price of $0.41 per
share and a warrant to purchase an additional 1,000,000 shares of
Common Stock at an exercise price of $0.65 per share (the
“Warrant”) in exchange for the cancellation and forgiveness of
$3,500,000 of trade payables owed to Elemetal as a result of
bullion-related transactions (together, the “Transactions”).
The $0.41 per share purchase price is a 17% premium over the
90-day trailing average closing price preceding the announcement by
Elemetal and NTR of a proposed transaction on February 8, 2016.
Additionally, the $0.41 per share represents an increase of 9% from
the original offer from Elemetal and NTR of $0.375 per share in
November 2015, and a 73% increase in the exercise price of the
Warrant.
In connection with the closing of the Purchase Agreement, DGSE
will enter into a registration rights agreement with NTR and
Elemetal providing for, among other things, demand and piggyback
registration rights with respect to the shares to be issued and
registration procedures. The closing of the Transactions is
expected to take place following satisfaction of various closing
conditions, including obtaining the approval of DGSE’s
stockholders.
Matthew Peakes, Chairman and Chief Executive Officer, stated,
“We are pleased to have signed and are excited about the potential
of the deal with Elemetal and NTR. While waiting on shareholder
approval, we will continue to strengthen the relationship with
Elemetal and believe their position as a global leader in the
precious metals industry will help us on our path to consistent
profitability.”
Important Information
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any security. The shares of the
Company’s Common Stock, the Warrant and the shares of the Company’s
Common Stock issuable upon exercise of the Warrant are being so
issued and purchased pursuant to an applicable exemption from the
registration requirements of the Securities Act and applicable
state securities laws.
In connection with its efforts to obtain stockholder approval of
the Transactions and certain related matters, the Company will file
with the Securities and Exchange Commission (the “SEC”) and mail to
its stockholders of record a Definitive Proxy Statement on Schedule
14A, which will contain information about the Company, the
Transactions and the related matters to be voted upon by the
Company’s stockholders at the Company’s 2016 annual meeting of
stockholders. STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE
PROXY STATEMENT ON SCHEDULE 14A CAREFULLY WHEN IT IS AVAILABLE
BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.
In addition to receiving the Definitive Proxy Statement on
Schedule 14A from the Company by mail, the Definitive Proxy
Statement on Schedule 14A, as well as other filings containing
information about the Company, may also be obtained, without
charge, from the SEC’s website at www.sec.gov.
The Company and its directors and executive officers may be
deemed to be participants in the solicitation of proxies.
Information concerning the interests of the Company’s directors and
executive officers in the Transactions will be set forth in the
Definitive Proxy Statement on Schedule 14A. Other information
concerning the Company and its directors and executive officers is
contained in the Company’s other filings with the SEC, including
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2015, which was filed with the SEC on March 30,
2016 and amended on April 27, 2016 and the Company’s Quarterly
Report on Form 10-Q for the fiscal quarter ended March 31,
2016 that was filed with the SEC on May 16, 2016.
About DGSE Companies
DGSE Companies, Inc. wholesales and retails jewelry, diamonds,
fine watches, and precious metal bullion and rare coin products
through its Charleston Gold & Diamond Exchange, Chicago Gold
& Diamond (formerly Bullion Express), 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 Illinois, South Carolina,
and Texas, the Company operates internet 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," "estimate," "project," "expect" 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. Factors that would cause or
contribute to such differences include, but are not limited to,
whether or not the Company’s stockholders approve the Transactions,
continued acceptance of the Company's products and services in the
marketplace, competitive factors, dependence upon third-party
vendors, and other risks detailed in the Company's periodic report
filings with the Securities and Exchange Commission. 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/20160621005462/en/
DGSE Companies, Inc.Matthew Peakes, 972-587-4021Chairman,
President and CEOinvestorrelations@dgse.com
DGSE Companies (AMEX:DGSE)
Historical Stock Chart
From Jun 2024 to Jul 2024
DGSE Companies (AMEX:DGSE)
Historical Stock Chart
From Jul 2023 to Jul 2024