CXI Announces Exchange Bank of Canada Enters into an Agreement to Acquire the Assets of a Canadian International Payments Bus...
July 09 2018 - 5:01PM
Currency Exchange International, Corp. (TSX:CXI)
(OTCBB:CURN), a full service foreign exchange technology and
services provider, is pleased to announce its wholly-owned
subsidiary Exchange Bank of Canada has entered into a definitive
agreement to acquire the assets of a business operating 22 years in
the province of Quebec from the private family owners who were
advised by Laurentian Bank Securities. These assets include a total
of approximately 400 corporate customers that are engaged in
international payments. Net revenues from this client base has been
approximately CDN $1.7 million (unaudited) in the last twelve
months. CXI’s management believes that this transaction will be
accretive to its annual earnings results. It is expected that
approximately 10 employees will be retained and employed in EBC’s
new Montreal Office. The transaction is pending regulatory
approval and will not close until all approvals have been obtained.
“We are delighted to introduce EBC’s expanded
financial product offering, supported by its high-level of customer
service, to this nice client base derived from this acquisition. We
look forward to being of service to the corporate customers, while
also obtaining a wealth of talent and experience from the retained
employees,” said Randolph Pinna, President and Chief Executive
Officer of EBC. “The customers will have access to fast, reliable
online trading with the resources and security of EBC as a Schedule
1 bank specializing in foreign exchange and international payments.
Additionally, opening a Montreal Office aligns with our strategic
vision to continue to grow in Quebec where we have a high
concentration of established customers today.”
The acquired corporate international payment
business will be integrated into EBC’s current business. The
retained employees are an experienced group capable of streamlining
the transition for the corporate customers. Operational
efficiencies are expected by bank management due to similar
business operations and overlap of some back office functions. At
the request of the seller, further details will remain private.
Conference Call Details:
The Company plans to host
a conference call on Tuesday July 10,
2018 at 8:30 AM (EST).
To participate in or listen to the call, please dial the
appropriate number:
- Toll Free: 1 (855) 336-7594
- Conference ID
number: 6886149
About Currency Exchange International,
Corp.
The Company is in the business of providing a
range of foreign currency exchange technology and processing
services in North America, including the Hawaiian Islands. Primary
products and services include the exchange of foreign currencies,
wire transfer payments, Global EFTs, purchase and sale of foreign
bank drafts and international travelers’ 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 wholly-owned Canadian subsidiary,
Exchange Bank of Canada, based in Toronto, Canada, provides foreign
banknote exchange, foreign cheque clearing and international
payment services to financial institutions and select corporate
clients in Canada through the use of its proprietary software –
www.ebcfx.com.
Contact Information
For further information please contact: Bill MitoulasInvestor
Relations(416) 479-9547Email: bill.mitoulas@ceifx.comWebsite:
www.ceifx.com
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATIONThis 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, the
ability to successfully complete and integrate the acquisition of
the Canadian international payment business, 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, difficulties in completing the acquisition of
the Canadian international payments business on the terms as
announced or at all, including receipt of all necessary regulatory
approvals, and successful integration of this business on a
profitable basis if the acquisition is completed, 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 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 Year Ended October 31, 2017. 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.
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