FT. LAUDERDALE, FL--(Marketwired - Feb 2, 2017) - Cardiff International, Inc. (OTC PINK: CDIF) announced today they entered into an LOI (Letter of Intent) to acquire Ride Today Acceptance, LLC (RTA).
Founded in January 2015, RTA capitalizes on a unique and profitable financing opportunity in the U.S. sub-prime motorcycle financing market. RTA has spent the last two years building a financial infrastructure and expanding its dealer footprint. As of January 1st, 2017, RTA has 204 dealers in 15 states. 2016 garnered over $6.5MM in original loans, ending the year with a portfolio of over $7MM with losses of less than 1.6%.
Unlike the subprime auto industry, RTA provides customers two major advantages over a subprime auto loan: 1.) favorable payment terms; 2.) assets with a slower depreciation rate.
With over 65 years of combined experience in dealerships, finance companies and credit risk management, RTA's senior management believes it's in their best interest to become part of Cardiff which provides them the financial platform to double their business over the next 12 months projecting their portfolio between $15-$20MM.
The U.S. new motorcycle sales averages approximately $350MM annually, while used motorcycle sales exceed $1.3B annually. RTA was recognized by Power Sports Finance in December as one of the top 10 sub-prime lenders in 2016.
In August 2016, RTA entered into an agent agreement with RPMOne, a leader in sales of Powersports after-market products currently in 800 dealerships nationwide.
About Cardiff: Cardiff International, Inc. is a public holding company, much like a cooperative, leveraging proven management in private companies that become subsidiaries under the Cardiff umbrella. Our focus is not industry or geographic-specific, but rather on proven management, market, and margin. Cardiff targets acquisitions of mature, high growth, niche companies. Cardiff's strategy identifies and empowers select income-producing middle market private businesses, technology companies and commercial real estate properties. Cardiff provides these companies both 1) the enhanced ability to raise money for operations or expansion, and 2) an equity exit and liquidity strategy for the owner, heirs, and/or Investors. For investors, Cardiff provides a diversified lower risk to protect and safely enhance their investment by continually adding assets and holdings. Cardiff is led by strong and talented roster of executives and advisors providing expert acquisition, market guidance and added value for subsidiaries and investors.
FORWARD LOOKING STATEMENT This news release contains forward looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. These risks include the failure to meet schedule or performance requirements of the Company's contracts, the Company's liquidity position, the Company's ability to obtain new contracts, the emergence of competitors with greater financial resources, and the impact of competitive pricing. In the light of these uncertainties the forward-looking events referred to in this release might not occur.
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