ERIE, PA--(Marketwired - Mar 25, 2014) - Fortitude Group, Inc. (OTC: FRTD) announced today that they have executed a private label card agreement with a fast growing bail bonds company.
The name of the company is being withheld until final approval by Fortitude's issuing bank is achieved. The company anticipates this approval within the next 14 days.
Under the terms of the agreement, Fortitude will supply and manage a private labeled Prepaid Discover® Card to a national bail bonds company who intends on using the card as a replacement to their existing national calling card program. This bail bonds company is currently licensed in five states with twelve new state applications pending approval. The bail bonds company currently uses the pre-paid phone cards as a data source in the event the customer skips out on their bail and fugitive recovery become necessary. Currently, the bail bonds company issues an average of 7500 calling cards per month.
The agreement calls for a minimum of 10,000 cards to be issued by the bail bonds company monthly within sixty days from the execution date of the agreement with Fortitude.
Thomas J. Parilla, CEO of Fortitude, stated, "This agreement further solidifies our foothold in the growing stored value industry. With this private label agreement, within the next quarter, we will be issuing a minimum of 10,000 cards per month representing approximately $32,000 in initial card purchase revenue per month and $289,300 in monthly transaction revenue. From this agreement, the company should realize a minimum net revenue of $384,000 in annual card sales and over $26 million in annual transaction revenue."
Fortitude Group, Inc. is a diversified company with investments in multiple sectors of the economy targeting joint ventures, wholly owned subsidiaries and/or majority/minority positions that cross various market segments with the goal of creating a quality company that builds intrinsic value for its shareholders.
Forward Looking Statements
This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such statements. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly revise any forward-looking statements.