|[February 16, 2017]
DGSE Companies, Inc. Announces Negotiations to Acquire Elemetal Recycling, LLC
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 discussions with Elemetal, LLC ("Elemetal") to
acquire�the business of Elemetal Recycling, LLC ("Recycling"), a
subsidiary of Elemetal.
No agreement has been reached, and there can be no assurance that an
agreement will be reached.
"This is part of DGSE's goal to seek acquisitions with potential
long-term rewards in relatively diversified revenue streams," stated
John Loftus, DGSE's President, Chairman and Chief Executive Officer. "We
want to pursue acquisition opportunities in select high-growth
industries to create value for our shareholders.
"Recycling is a de-manufacture 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.
Following the mid-December 2016 leadership transition, we feel that DGSE
has made extraordinary gains in the retail side of our business, which
we believe will guide us toward higher revenues, and regained
profitability and competitiveness. Our retail stores offer value and
liquidity to those seeking to buy, sell or trade jewelry, watches,
diamonds or coins.
Dallas Gold & Silver Exchange has completed its planned consolidation of
three smaller stores into one superstore near the epicenter of Dallas
retail at I-635 and Preston Road and entered into a services agreement
to implement a point-of-sale system to improve efficiency and deliver a
better customer experience. DGSE also has relocated its administrative
team to ths Dallas location, streamlined operations, decreased office
staff and increased sales staff. The closer proximity to our clients
allows the executive team to be a part of every interaction and every
purchase, which we believe will help us successfully implement our new
operational strategies, focus our attention on satisfying customers, and
return to our core strengths. We believe these organizational and
leadership changes will contribute to a winning strategy for our
business going forward.
About DGSE Companies, Inc.
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,
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 which may constitute
"forward-looking" statements, usually containing the words "believe,"
"seek," "estimate," "project," "expect," "will" or similar expressions.
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,
including with respect to the Company's potential acquisition of
Recycling, which is subject to further negotiations with Elemetal, the
satisfactory completion of due diligence, the availability of funds to
purchase Recycling, the timing of the transaction and benefits expected
to be derived therefrom. Other factors that would cause or contribute to
such differences include, but are not limited to, the risks detailed in
the Company's periodic report filings with the Securities and Exchange
Commission. Forward-looking statements represent the Company's
expectations and beliefs concerning future events based on information
available to the Company as of the date of this release. By making these
forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of this
View source version on businesswire.com: http://www.businesswire.com/news/home/20170216006156/en/
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