DALLAS, TX / ACCESSWIRE / February 21, 2020 / ECHG, LLC, a subsidiary of Envela Corporation (NYSE American: ELA) ("Envela" or the "Company") announced today that it has entered into an agreement to lend $1.5MM to CExchange, LLC, and warrant and call-option agreements to acquire all of CExchange's equity interests. There is no assurance that ECHG will exercise its warrant or call option.
"Today is an exciting day for ECHG, as we believe acquiring CExchange will deliver significant value to our shareholders. CExchange shares our core values and strong commitment to fostering talent and delivering a premium customer experience," said John Loftus, CEO of Envela. CExchange also complements ECHG's operations well, with an enviable network of customers, solid marketplace leadership and powerful technology infrastructure," added Loftus.
CExchange, founded in 2006 with a focus on consumer electronics, is a leading provider of consumer electronics trade-in services in the U.S. retail sector, and an expert in reverse logistics, repair services, asset-recovery management and retail-sales representation. It provides services to clients among the largest manufactures, wireless-service providers and U.S. retailers.
CExchange has a proven track record of building custom programs to efficiently process both ends of tech companies' logistics needs. It's been awarded significant contracts from highly respected names in the tech industry. CExchange also provides custom retail solutions for a diverse client base, including several Fortune 500 companies. It uses proprietary market analytics to determine the highest recovery methods for processed products, selling wholesale and direct-to-consumer across multiple channels.
Hunter Howard, President and COO of CExchange, said, "Companies are only as good as their people, innovation and determination. Envela/ECHG leadership, combined with our experienced management team, will prepare us to achieve the next level of success." "Such a partnership will put us in a position to accelerate growth and provide retailers with unsurpassed solutions," added CExChange's CEO and co-founder, Scott Nordhaus.
"ECHG views CExchange as the clear leader in electronics trade-ins, having delivered tremendous value to a long list of Fortune 500 retailers. Its ISO and R2 certified facility, and end-to-end secure technology enable its retail clients to achieve higher trade-in prices for their customers, better data and insights, and a more liquid marketplace," said Tommy McGuire, President of ECHG, LLC. "We believe acquiring CExchange will position ECHG to generate an attractive total return for Envela shareholders over the long term," added McGuire.
CExchange is a leading electronics trade-in and recycling service for retailers. It provides custom solutions to meet the needs of diverse clients, including Fortune 500 companies, both online and offline. CExchange is committed to providing services that help consumers get maximum value for their used electronics and protect the environment through responsible recycling. Its services include reverse logistics and refurbishing; and resale and liquidation services for returned, excess, and other liquidated merchandise. Since servicing its first Fortune 500 company in 2007, CExchange has sold hundreds of millions of dollars of inventory.
Envela and its subsidiaries engage in diverse business activities within the recommerce sector. These include one of the nation's premier authenticated recommerce retailers of luxury hard assets; end-of-life asset recycling; data destruction and IT asset management; and providers of products, services and solutions to industrial and commercial companies.
Envela operates primarily via two business segments. Through DGSE, LLC, the Company will operate its Dallas Gold and Silver Exchange, Charleston Gold & Diamond Exchange, and Bullion Express brands. Under ECHG, LLC, it will operate Echo Environmental, ITAD USA and Teladvance. Envela is a Nevada corporation, headquartered in Dallas, Texas.
Additional information about Envela is available at its investor-relations site, Envela.com.
This press release includes statements that may constitute "forward-looking" statements, including statements regarding future equity acquisitions, business strategies, and the potential future success of CExchange. 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, 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.
Investor Relations Contact:
Head of Investor Relations
13022 Preston Rd Dallas, TX 75240
SOURCE: Envela Corporation