DGSE Companies, Inc. Announces Letter of Intent to Acquire Elemetal Recycling, LLC Assets
April 19 2017 - 6:13PM
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 a non-binding Letter
of Intent with Elemetal, LLC (“Elemetal”) to acquire the
tangible personal-property assets of Elemetal and Elemetal
Recycling, LLC (“Recycling”) at 2101 W. Belt Line Road, Carrollton,
Texas, the equipment at 10707 Composite Drive, Dallas, and certain
accounts receivable of Recycling. The total estimated cash proceeds
to Elemetal and Recycling from the sale and from the payment by
DGSE of approximately $3.8 million of obligations owed by DGSE to
Elemetal is $19.8 million. In addition, DGSE would assume certain
accounts payable of Recycling.
No definitive agreement has been reached, and there can be no
assurance that a definitive agreement will be reached. DGSE Board
of Directors approval would be required for such definitive
agreement.
“DGSE seeks to acquire diversified business opportunities with
potential long-term rewards, and this Recycling acquisition holds
great promise in working toward that strategic goal,” stated John
Loftus, DGSE’s President, Chairman and Chief Executive Officer.
“Recycling is a de-manufacturer 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.
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 that may constitute
“forward-looking” statements, including statements regarding the
potential acquisition of Recycling and entering into a definitive
agreement regarding the potential acquisition. 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, negotiations regarding
a definitive agreement, market conditions, 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 except as
required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170419006724/en/
DGSE Companies, Inc.Bret Pedersen,
469-371-2388bpedersen@dgse.com
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