In LFDG today at .15 - .17 nice bottom play, yesterday's news:
LitFunding Acquires Easy Money Express
2006-02-13 14:30 ET - News Release
LAS VEGAS -- (Business Wire) -- Feb. 13, 2006
LitFunding (OTCBB: LFDG) announced that it has signed a
Merger and Acquisition Agreement to acquire Easy Money Express Inc.
"The acquisition of Easy Money affords LitFunding with a highly
profitable opportunity to leverage our capital at high yields with
relative safety," commented Morton Reed, CEO of LitFunding.
Easy Money Express will operate as a wholly owned subsidiary of
LitFunding, and develop a deferred deposit, consumer loan business
that will specialize in providing short-term cash advances or "payday
loans," as they are commonly called. Easy Money has developed an
economical call center and Internet-based business model that permits
applications to be submitted via the Internet. Applications are
processed virtually instantly through highly automated Web-based
software. Approved loans are direct deposited into the consumer's
account and debited automatically the next payday. Easy Money Express
has the ability to reach potentially millions of customers, without
the high cost of traditional "brick-and-mortar" retail locations.
As a condition to finalizing the merger, Easy Money Express will
enter into a management agreement with LitFunding whereby LitFunding
will receive a fee of $200,000 in exchange for Easy Money Express
utilizing the company's resources. The terms of the merger agreement
will allow Easy Money Express to become a separate, publicly traded
entity, under certain terms. In such an event, LitFunding and its
shareholders will retain 15% of the newly issued shares of Easy Money
Express.
It is the intention of the management of LitFunding and Easy Money
Express to finalize the merger by March 31, 2005. Further details of
the proposed transaction are available in the company's Form 8-K that
was filed with the SEC today.
About LitFunding Corp.
LFC, through its wholly owned subsidiary LitFunding USA (the
company), remains one of the nation's largest public companies
specializing in the funding of litigation primarily through
plaintiffs' attorneys. The company is in the litigation funding
business making advances to plaintiffs' attorneys primarily in the
areas of personal injury. A fee is earned when the lawsuits so funded
are settled or otherwise concluded by a court ruling. At that time,
both the funds advanced and the fee contractually agreed to are repaid
to the company.
About Easy Money Express
Easy Money Express is an independent Internet and call center
payday advance company. The company is engaged in loaning payday
advances to individuals of legal age, with a checking account,
verifiable employment and residence, in amounts typically up to $500.
The funds advanced, and the fee contractually agreed to, are repaid to
the company generally in 15 days or less. The payday advance industry
is a multibillion-dollar industry, representing hundreds of millions
of transactions, with an estimated 12 million households being served
each year.
This press release does not constitute an offer of any securities
for sale.
Except for the historical information presented herein, the
matters set forth in this press release are forward-looking statements
within the meaning of the "safe harbor" provision of the Private
Securities Litigation Reform Act of 1995, or by the Securities and
Exchange Commission in its rules, regulations and releases. These
forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially. These risks include the
ability of LFC to reach definitive agreements with respect to and
close the proposed financing discussed in this release as well as
activities, events or developments that the company expects, believes
or anticipates will or may occur in the future. Such statements are
subject to a number of assumptions, risks and uncertainties. Readers
are cautioned that such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those set forth in the forward-looking statements. In
addition, other risks are detailed in the company's periodic reports.
These forward-looking statements speak only as of the date hereof. The
company disclaims any intent or obligation to update these
forward-looking statements.
Contacts:
LitFunding Corp., Las Vegas
Michelle DeMuth, 702-317-1610
With trading you must conquer your emotions and be very disciplined about your goals.
