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 discussions with Elemetal, LLC (“Elemetal”) to acquire the business of Elemetal Recycling, LLC (“Recycling”), a subsidiary of Elemetal.
No agreement has been reached, and there can be no assurance that an agreement will be reached.
“This is part of DGSE’s goal to seek acquisitions with potential long-term rewards in relatively diversified revenue streams,” stated John Loftus, DGSE’s President, Chairman and Chief Executive Officer. “We want to pursue acquisition opportunities in select high-growth industries to create value for our shareholders.
“Recycling is a de-manufacture 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.
Following the mid-December 2016 leadership transition, we feel that DGSE has made extraordinary gains in the retail side of our business, which we believe will guide us toward higher revenues, and regained profitability and competitiveness. Our retail stores offer value and liquidity to those seeking to buy, sell or trade jewelry, watches, diamonds or coins.
Dallas Gold & Silver Exchange has completed its planned consolidation of three smaller stores into one superstore near the epicenter of Dallas retail at I-635 and Preston Road and entered into a services agreement to implement a point-of-sale system to improve efficiency and deliver a better customer experience. DGSE also has relocated its administrative team to this Dallas location, streamlined operations, decreased office staff and increased sales staff. The closer proximity to our clients allows the executive team to be a part of every interaction and every purchase, which we believe will help us successfully implement our new operational strategies, focus our attention on satisfying customers, and return to our core strengths. We believe these organizational and leadership changes will contribute to a winning strategy for our business going forward.
About DGSE Companies, Inc.
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 which may constitute “forward-looking” statements, usually containing the words “believe,” “seek,” “estimate,” “project,” “expect,” “will” or similar expressions. 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, including with respect to the Company’s potential acquisition of Recycling, which is subject to further negotiations with Elemetal, the satisfactory completion of due diligence, the availability of funds to purchase Recycling, the timing of the transaction and benefits expected to be derived therefrom. Other factors that would cause or contribute to such differences include, but are not limited to, the risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission. Forward-looking statements represent the Company’s expectations and beliefs concerning future events based on information available to the Company as of the date of this release. 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.
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