Xponential Inc (fka XPOI)

[mrpanick]

The shareholder letter says the pawn shop bought in that deal was the market leader for the area and brought new expertise in gold to the whole company. There was also 1.9 mil of goodwill on that deal. Loan was at 15%. Must have been one heck of a pawn shop to be worth all that trouble. I guess we'll start to get an idea when the Dec numbers come out if the deal was worthwhile.


One thing that's apparent from the deal is that Cummer likes XPOI stock. If it was worthless I don't think he would have negotiated to get some included in the deal. There is also an interesting provision where part of the loan interest can be paid in stock, but the stock can't be valued at less than $1 / share for this purpose.

My take remains that they will build up Pawn Mart for another year or two and then look to sell it or refi on favorable terms.