EL SEGUNDO, Calif., June 24, 2024 (GLOBE NEWSWIRE) — A-Mark Treasured Metals, Inc. (NASDAQ: AMRK) (A-Mark), a number one absolutely built-in treasured metals platform, has acquired a further 8% of the excellent fairness curiosity in Calgary-based Silver Gold Bull Inc. (SGB) for roughly $9.6 million. The funding brings A-Mark’s possession in SGB to 55.4% and continues to increase A-Mark’s direct-to-consumer (DTC) footprint within the worldwide market. A-Mark acquired its preliminary stake in SGB in 2014, growing its funding to 47.4% in 2022.
Based in 2009, SGB is a number one e-commerce treasured metals retailer in Canada targeted on offering on-line innovation, high-quality merchandise, aggressive pricing, and glorious customer support.
Transaction Abstract
- A-Mark paid roughly $9.6 million for a further 8% of the excellent fairness curiosity in SGB.
- A-Mark’s earlier possibility to extend its possession curiosity in SGB has been lowered from 75% to 70%. The choice, beforehand set to run out in September 2024, has been prolonged to September 2025.
- Employment agreements have been entered into with key SGB administration, together with Nikolas Morianos, Mihali Belandis and President and Co-Founder Bob Belandis.
SGB monetary and operational highlights for the fiscal 12 months ended April 30, 2024, embody:
- Web gross sales of $467.9 million, gross revenue of $20.8 million (4.4% of internet gross sales), and pre-tax revenue of $4.2 million (0.9% of internet gross sales).
- Offered greater than 7.85 million ounces of silver and 151,000 ounces of gold
- Added roughly 53,000 new clients, for a complete of 520,000 clients as of April 30, 2024
- Processed roughly 105,000 orders
Administration Commentary
“Growing our stake in SGB aligns with our technique to increase internationally,” mentioned A-Mark CEO Greg Roberts. “Since our 2014 funding, SGB has proven constant development in Canada and overseas. We purpose to strengthen our partnership with SGB and should additional enhance our possession within the firm sooner or later.”
Bob Belandis commented: “This marks one other milestone in our enduring partnership with A-Mark. Their earlier investments have fueled important development for us. This extra backing positions us for additional growth in Canada and new markets.”
Transaction Advisors
Frye & Hsieh LLP and Fasken Martineau DuMoulin LLP acted as authorized advisors to A-Mark.
MLT Aikins LLP acted as authorized advisor to SGB.
About A-Mark Treasured Metals
Based in 1965, A-Mark Treasured Metals, Inc. is a number one absolutely built-in treasured metals platform that provides an array of gold, silver, platinum, palladium, and copper bullion, numismatic cash, and associated merchandise to wholesale and retail clients by way of a portfolio of channels. The corporate conducts its operations by way of three complementary segments: Wholesale Gross sales & Ancillary Companies, Direct-to-Client, and Secured Lending. The corporate’s international buyer base spans sovereign and personal mints, producers and fabricators, refiners, sellers, monetary establishments, industrial customers, buyers, collectors, e-commerce clients, and different retail clients.
A-Mark’s Wholesale Gross sales & Ancillary Companies section distributes and purchases treasured steel merchandise from sovereign and personal mints. As a U.S. Mint-authorized purchaser of gold, silver, and platinum cash since 1986, A-Mark purchases bullion merchandise instantly from the U.S. Mint on the market to clients. A-Mark additionally has longstanding distributorships with different sovereign mints, together with Australia, Austria, Canada, China, Mexico, South Africa, and the UK. The corporate sells greater than 200 totally different merchandise to e-commerce retailers, coin and bullion sellers, monetary establishments, brokerages, and collectors. As well as, A-Mark sells treasured steel merchandise to industrial customers, together with steel refiners, producers, and digital fabricators.
Positioned within the coronary heart of Hong Kong’s Central Monetary District, LPM Group Restricted (LPM), is certainly one of Asia’s largest treasured metals sellers. LPM was acquired by AM/LPM Ventures, LLC, a subsidiary of A-Mark. LPM presents a big selection of merchandise to its wholesale clients, by way of its retail showroom and 24/7 on-line buying and selling platform, together with lately launched silver cash, gold bullion, licensed cash, and the most recent collectible numismatic points.
By its A-M International Logistics subsidiary, A-Mark supplies its clients with a spread of complementary companies, together with managed storage choices for treasured metals in addition to receiving, dealing with, inventorying, processing, packaging, and transport of treasured metals and cash on a safe foundation. A-Mark’s mint operations, that are carried out by way of its wholly owned subsidiary Silver Towne Mint, allow the corporate to supply clients a variety of proprietary coin and bar choices and, in periods of market volatility when the provision of silver bullion from sovereign mints is usually product constrained, most well-liked product entry.
A-Mark’s Direct-to-Client section operates as an omni-channel retailer of treasured metals, offering entry to a mess of merchandise by way of its wholly owned subsidiaries, JM Bullion and Goldline. JM Bullion is a number one e-commerce retailer of treasured metals and operates eight individually branded, company-owned web sites focusing on particular niches inside the treasured metals market: JMBullion.com, ProvidentMetals.com, Silver.com, Gold.com, GoldPrice.org, SilverPrice.org, BGASC.com, and BullionMax.com. JMB additionally owns CyberMetals.com, an internet platform the place clients should purchase and promote fractional shares of digital gold, silver, platinum, and palladium bars in a spread of denominations. Goldline markets treasured metals on to the investor group by way of varied channels, together with tv, radio, and telephonic gross sales efforts. A-Mark additionally holds minority possession pursuits in three further direct-to-consumer manufacturers.
The corporate operates its Secured Lending section by way of its wholly owned subsidiary, Collateral Finance Company (CFC). Based in 2005, CFC is a California licensed finance lender that originates and acquires loans secured by bullion and numismatic cash. Its clients embody coin and treasured steel sellers, buyers, and collectors.
A-Mark is headquartered in El Segundo, CA and has further places of work and amenities within the neighboring Los Angeles space in addition to in Dallas, TX, Las Vegas, NV, Winchester, IN, Vienna, Austria, and Hong Kong. For extra data, go to www.amark.com.
A-Mark periodically supplies data for buyers on its company web site, www.amark.com, and its investor relations web site, ir.amark.com. This consists of press releases and different details about monetary efficiency, studies filed or furnished with the SEC, data on company governance, and investor shows.
Firm Contact:
Steve Reiner, Government Vice President, Capital Markets & Investor Relations
A-Mark Treasured Metals, Inc.
1-310-587-1410
sreiner@amark.com
Investor Relations Contacts:
Matt Glover and Greg Bradbury
Gateway Group, Inc.
1-949-574-3860
AMRK@gateway-grp.com
