Advantex Marketing International Inc.
TSX VENTURE : ADX

Advantex Marketing International Inc.

September 30, 2010 14:20 ET

Advantex Renews Credit Facility

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2010) - Advantex Marketing International Inc. (TSX VENTURE:ADX), a leading specialist in loyalty marketing programs and merchant funding, today announced that it has renewed its agreement with Accord Financial Inc.(Accord) a subsidiary of Accord Financial Corp. (TSX:ACD) for a three year term expiring in December, 2013.

During the renewal term, the credit facility has been increased to $8.5 million from the current limit of $6.5 million. Advantex will continue to use the credit facility solely to expand its Advance Purchase Marketing (APM) program.

Under the APM program Advantex acquires the rights to future designated credit card transactions at a discount from the face value from a participating merchant, and promotes the merchant, by way of cardholder incentives through loyalty marketing programs, and targeted marketing programs. Advantex's revenue is the spread between the future credit card transactions and its costs to acquire the rights (transaction credits). Proceeds from the spend on designated credit cards are received by Advantex and a predetermined portion is applied to reduce the transaction credits balance that the merchant owes.

The APM program revenues have progressively increased, and currently account for about 50% of Advantex's revenues. The recent signing of channel partner agreements enable Advantex to continue to expand its APM program in the Dining segment targeting primarily Canadian restaurants, and new Retail segment covering merchants retailing men's and ladies fashion, footwear and accessories. 

Under the agreement with Accord, the credit facility is a line to Advantex and interest is calculated daily on the amount outstanding and charged monthly. The three-year agreement will automatically renew for one-year periods unless either party gives termination notice.

About Advantex Marketing International Inc.

Advantex is a specialist in the marketing services industry, managing white-labeled rewards accelerator programs for major affinity groups through which their members earn bonus frequent flyer miles and/or other rewards on purchases at participating merchants. Under the umbrella of each program, Advantex provides merchants with marketing, customer incentives, and additionally secured future sales through its Advance Purchase Marketing model. Advantex partners include more than 1,000 restaurants, golf courses, small inns and resorts, hotels, retailers including those participating in its online shopping malls, CIBC, Aeroplan, Alaska Airlines, and Lufthansa Airlines. Advantex is traded on the TSX Venture Exchange under the symbol "ADX". For additional information on Advantex, please visit www.advantex.com

Forward-Looking Information

This press release contains certain "forward-looking information". All information, other than information comprising historical fact, that addresses activities, events or developments that Advantex believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Such forward-looking information relates to, without limitation, Advantex's ability to expand its APM product offering in the existing Dining segment and the new Retail segments; and Advantex's anticipated increase in the number of merchants with which it will do business. Forward-looking information reflects the current expectations or beliefs of Advantex based on information currently available to Advantex. Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the actual results of Advantex to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Advantex. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in general economic and market conditions; changes to regulations affecting Advantex's activities; Advantex's financial status; continuation of Advantex's existing agreements with affinity, and financial partners; and other factors, including without limitation, those listed under "General Risks and Uncertainties" and "Economic Dependence" in Advantex's Management Discussion and Analysis for the nine months ended March 31, 2010. All forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Advantex disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although Advantex believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Advantex Marketing International Inc.
    Mukesh Sabharwal
    Vice-President and Chief Financial Officer
    905-470-9558 ext. 249
    Mukesh.sabharwal@advantex.com