LAS VEGAS, March 27 /PRNewswire-FirstCall/ - Esprit Financial Group
Inc. (ESPRIT) (formerly Cash Now Corporation) (DBA Cash Now) (CHNW.PK)
http://www.cashnow.com is a public company engaged in the operation and licensing
of a comprehensive suite of Internet-based payday loan and check cashing
software and private label back end office systems for the sub prime
market. Additionally, the Company is in the late developmental stage of
offering an innovative low-cost online Introductory Broker (IB) Forex
trading system.
As previously announced on March 6th, 2007, the Company has
satisfactorily resolved all of the issues related to its acquisition of
Global and is pleased to announce that the deal will officially close on
April 16th, 2007, in an all-cash transaction.
In the interim, Global founder Jack Chang, the principal developer of
all of Global's products and services, will continue to work for Esprit
heading up the Company's Electronic Funds Payment division, and is actively
pursuing sales opportunities on behalf of the Company. Many of these
opportunities relate to potential clients who have already expressed
interest in Global Products. With the backing and support of Cash Now,
these can now be pursued and brought to fruition.
Mr. Chang has developed an extensive number of products and service
packages since he founded Global in 2002. Importantly, the new division
adds four new product offerings to Cash that are at the cutting edge of
consumer banking services.
- U.S. Prepaid Debit Cards
- International Prepaid Debit Cards
- EM2 - Electronic Money Management System which is a comprehensive e-
wallet that can manage multiple bank accounts, remit funds worldwide
and provide banking capabilities to consumers who do not actually
have a bank account.
- Check 21 - advanced checking service that can significantly reduce
holdback periods by banking institutions in clearing checks.
Global has also developed or is in the process of developing a number
of additional products related to wireless mobile commerce and a variety of
loyalty programs and discount services programs built around its prepaid
debit and EM2 product platforms.
Significantly, Esprit has an agreement in principle to spin-off Global
to a Texas-based Company after the initial acquisition. Esprit will retain
a 25% interest in Global upon completion of the sale. Esprit will also
retain exclusive licensing rights for the four core products relevant to
its operations. It is anticipated that this second transaction will take
place within 30 days of closing the Global acquisition, and will provide
significant additional funding to Esprit upon closing.
Garr Winters, Esprit CEO explains; "It is not very often that you get a
chance in business to have your cake and eat it, too. We have negotiated a
very favorable purchase price for Global, and an even better deal to spin
it off to another company at significant profit. We will end up with
exclusive licensing rights for the core products which were of interest to
us, and vend off the remaining assets and corporate shell to a third party
at a healthy profit. The net proceeds of that sale will be used to pursue
the acquisition of the OTCBB Company we have identified."
Winters added, that "The intangible factor in all this is the
tremendous goodwill that Jack Chang brings to Esprit. Mr. Chang is the
developer and patent co-holder of the ATM (Automated Teller Machine) and
participated in the earliest development and use of magnetic stripe based
data on plastic cards, as well as being a pioneer in electronic funds
transfer. He has provided services to such prestigious companies as
Citibank, Coca-Cola Enterprises, American Express, Sears, Visa, EDS, and
NationsBank/Bank of America. His network within the banking industry is
invaluable, his reputation impeccable. With the resources of Esprit behind
him, we will be able to do some incredible things together."
Winters concluded; "There's an awful lot of meat to digest here. We
will be issuing a more complete backgrounder on these corporate
developments by mid-April, with another update from myself and our division
heads similar to our February 9th recap earlier this year."
About Esprit Financial Group Inc.
Esprit Financial Group Inc, (formerly Cash Now Corporation) is a
pioneer in the payday loan industry, and continues to develop the most
comprehensive menu of services in the cash advance industry and will retain
the Cash Now brand for many of these services. The company's proven
business model includes licensing to corporately operated locations across
the U.S. and Canada, as well as several foreign markets. Additionally, the
Company's website is the most advanced payday-lending portal, offering key
insight to clients and potential clients alike.
The Company is currently in the process of expanding its product
portfolio by bringing a retail Forex trading platform to market, targeted
to seasoned day traders. The Beta test site has now been launched, with a
full-service roll-out to follow once the platform has been successfully
tested.
Additionally, the Company's e-wallet product, named EM2 (Electronic
Money Management) continues to be developed. This stored value card allows
customers to transfer cash value without having to issue checks. Employers
can use it to pay employees (of great benefit for hourly workers who may
not have a bank account); in multi-level marketing organizations, as well
as facilitating electronic fund transfers.
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.
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