AUSTIN, Texas, Aug. 30, 2011 /PRNewswire/ -- EZCORP, Inc.
(NASDAQ: EZPW) announced today that it has terminated the
Transaction Implementation Agreement with Cash Converters
International Limited effective immediately. Under that
agreement, which was originally announced in March, EZCORP would
have, among other things, acquired a controlling interest in Cash
Converters.
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The termination follows the release by the Australian Federal
Government on August 25 of various
proposals to limit the amount of fees that can be charged in
connection with "small amount credit contracts." As currently
proposed, those limitations could have a material impact on Cash
Converters' consumer loan business in Australia. Consequently, EZCORP has
elected to terminate the agreement in accordance with its
terms.
Paul Rothamel, EZCORP's President
and Chief Executive Officer, stated: "We still have a
significant investment in Cash Converters — we remain a 33%
shareholder and we own the master franchise rights for the Cash
Converters business in Canada.
Consequently, we are very interested in, and committed to,
Cash Converters' long-term success and look forward to finding
other ways to proactively work with the Cash Converters team to
achieve that success and maximize the long-term value for all Cash
Converters shareholders."
About EZCORP
EZCORP is a leading provider of specialty consumer financial
services. It provides collateralized non-recourse loans,
commonly known as pawn loans, and a variety of short-term consumer
loans, including payday loans, installment loans and auto title
loans, or fee-based credit services to customers seeking loans.
At its pawn stores, the company also sells merchandise,
primarily collateral forfeited from its pawn lending
operations.
EZCORP operates more than 1,000 stores, including over 500 pawn
stores in the U.S. and Mexico and
over 500 short-term consumer loan stores in the U.S. and
Canada. The company also has
significant investments in Albemarle & Bond Holdings PLC
(ABM.L), one of the U.K.'s largest pawnbroking businesses with over
130 stores, and Cash Converters International Limited (CCV.L and
CCV.AUS), which franchises and operates a worldwide network of
almost 600 stores that provide financial services and sell
pre-owned merchandise.
Special Note Regarding Forward-Looking Statements
This announcement contains certain forward-looking statements
regarding EZCORP's plans and strategy. These statements are
based on EZCORP's current expectations. Actual results in
future periods may differ materially from those expressed or
implied by these forward-looking statements due to a number of
uncertainties and other factors, including changing market
conditions in the overall economy and the industry, consumer demand
for EZCORP's products and services, and changes in the regulatory
environment. For a discussion of various factors affecting
EZCORP's business and prospects, see EZCORP's annual, quarterly and
other reports filed with the Securities and Exchange
Commission.
EZCORP Investor Relations
(512) 314-2220
investor_relations@ezcorp.com
SOURCE EZCORP, Inc.