Company Website:
http://www.dgsecompanies.com
DALLAS -- (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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170419006724/en/
Contacts:
DGSE Companies, Inc.
Bret Pedersen, 469-371-2388
bpedersen@dgse.com
Source: DGSE Companies, Inc.
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