GVHL and EFGO
Esprit Financial Group Inc. (Esprit) (EFGO.PK) Provides $250,000 Mezzanine Financing to Global Vision Holdings, Inc (GVHL)
LAS VEGAS, NV, July 5 /PRNewswire-FirstCall/ - Esprit Financial Group Inc. (ESPRIT) (EFGO.PK) www.espritfinancialgroup.com is pleased to announce it has provided $250,000 in funding to Global Vision, which is to assist in finalizing the acquisition of International Express Payment (IEXPay).
The funding is in the form of subordinated debt, and carries an annual interest rate of 15%, payable twice a year beginning Dec 31st, 2007. Debt repayments begin March 31st, 2009 at the rate of $50,000 per quarter in 5 instalments.
Additionally, stock warrants have been granted, under the following terms:
- The lesser of $100,000 worth of stock, the face value of the debt
still outstanding, or 5% of the outstanding stock as of December 31st
each year at a strike price based on the average price per share
traded in the previous 90 days.
- The stock warrants can only be exercised once in a calendar year,
beginning June 30th, 2009.
Esprit CEO Garr Winters announced, 'This is a win-win for both companies. As previously disclosed, Esprit has maintained a 23% interest, in GVHL we maintain the upside opportunity to benefit from the long-term potential we see in GVHL and IEXPay while limiting our financial obligations and exposure. The result is that Esprit keeps both deals in friendly and cooperative hands.'
Winters added, 'We had hoped to develop synergies between the two companies to develop complementary financial services within the incredibly attractive Chinese market. We have now made arrangements to share resources such as the costs of travel, China-based operations, and some daily operations. We saw this as a natural fit that Esprit provide this interim funding to accelerate the growth of both companies.'
About Esprit Financial Group Inc.
Esprit Financial Group Inc. is a public company engaged in a diversified number of online financial services. These include:
- PayDay Loans: A pioneer in the payday loan industry, the Company
licenses comprehensive software solutions to industry participants,
under the Cash Now banner at www.cashnow.org.
- Forex: The Company's Forex Trading division offers an innovative low-
cost Forex trading service at www.cashnow.com targeted to active day-
traders.
- Advanced Electronic Funds Management: This division offers a number
of class leading financial services that facilitate a variety of
Internet based international electronic funds transfer and cash
management solutions.
- Structured Debt Resolution: This division will offer streamlined,
cost effective alternative services to facilitate the negotiation of
debt settlement online.
Safe Harbor Statement
Information in this press release may contain 'forward-looking statements.' Statements describing objectives or goals or the Company's future plans are also forward-looking statements and are subject to risks and uncertainties, including the financial performance of the Company and market valuations of its stock, which could cause actual results to differ materially from those anticipated. Forward-looking statements in this news release are made pursuant to the 'Safe Harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to the ability to close transactions being contemplated, risks related to sales, continued acceptance of Esprit Financial Group's products, increased levels of competition, technological changes, dependence on intellectual property rights and other risks detailed from time to time in Esprit Financial Group's periodic reports filed with the regulatory authorities.
SOURCE Esprit Financial Group
Source: PR Newswire (July 5, 2007 - 7:00 AM EST)
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