DALLAS--(BUSINESS WIRE)--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 a non-binding Letter of Intent with Elemetal, LLC (“Elemetal”) to acquire the tangible personal-property assets of Elemetal and Elemetal Recycling, LLC (“Recycling”) at 2101 W. Belt Line Road, Carrollton, Texas, the equipment at 10707 Composite Drive, Dallas, and certain accounts receivable of Recycling. The total estimated cash proceeds to Elemetal and Recycling from the sale and from the payment by DGSE of approximately $3.8 million of obligations owed by DGSE to Elemetal is $19.8 million. In addition, DGSE would assume certain accounts payable of Recycling.
No definitive agreement has been reached, and there can be no assurance that a definitive agreement will be reached. DGSE Board of Directors approval would be required for such definitive agreement.
“DGSE seeks to acquire diversified business opportunities with potential long-term rewards, and this Recycling acquisition holds great promise in working toward that strategic goal,” stated John Loftus, DGSE’s President, Chairman and Chief Executive Officer.
“Recycling is a de-manufacturer 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.
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, and www.cgdeinc.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 that may constitute “forward-looking” statements, including statements regarding the potential acquisition of Recycling and entering into a definitive agreement regarding the potential acquisition. 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. Factors that would cause or contribute to such differences include, but are not limited to, negotiations regarding a definitive agreement, market conditions, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.