...and this just in:
Actrade Launches New International Finance Division
NEW YORK, May 26 /PRNewswire/ -- Actrade International, Ltd. (Nasdaq: ACRT), developers of an innovative financing program utilizing Trade Acceptance Drafts (or "TADs") for buyers and sellers of goods and services, today announced plans to establish a new operating subsidiary, Actrade Forfaiting Inc., to be located in the Bahamas, which will provide short term financing services (up to 12 months) intended to facilitate commercial transactions between companies in foreign countries through the use of various commercial instruments (i.e. trade acceptance drafts, bills of exchange, notes, etc.). These services will be tailored to the specific needs of the parties to the transaction and to the laws of the foreign countries involved. Mr. Amos Aharoni, who will head the new International Finance Division said, "We are excited about the growth potential of this new venture. The multi-billion dollar international forfaiting industry principally addresses financing needs which are medium to long term in nature (that is, over 12 months). We will fill what has been a gap in the existing market by providing similar services for transactions of up to 12 months."
The new division will be funded directly by Actrade S.A. who will infuse up to $5 million to initiate these new financing services. Mr. Aharoni went on to say, "Our target market includes virtually every company that needs short-term financing for their international trade activities. In addition to foreign companies, we expect that the services to be offered by this new division will compliment the operations of Actrade Capital. More and more of Actrade's American customers have repeatedly asked us to provide short-term trade-financing services for their export operations. This new division will now allow Actrade to provide these services." Management does not expect this division to contribute significantly to Company revenues until fiscal 1999. The Auditors appointed for Actrade Forfaiting Inc. are Deloitte & Touche, Nassau, Bahamas.
Mr. Amos Aharoni will serve as President of this new division and will continue as Chief Executive Officer of Actrade International Ltd. Alexander C. Stonkus remains COO/CFO of the Company and will replace Mr. Aharoni as President of Actrade Capital Inc. In addition, Mr. John Mogar has been promoted to Executive Vice President of Sales and Marketing for Actrade Capital Inc. Mr. Stonkus stated, "John has been a great asset to the Company as National Sales Manager. I look forward to working closely with him in his new capacity and have every confidence that he will bring a dynamic new level of energy to our sales and marketing efforts."
Concerning the TAD Program, Mr. Stonkus went on to say, "As we approach the last month of our fiscal year, sales continue to increase and we remain confident that we meet our revenue and profit estimates for fiscal 1998."
Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties which are described in the company's SEC reports, including the 10-KSB for the period ended June 30, 1997, and the 10-Q's for the periods ended September 30, 1997, December 30, 1997 and March 30, 1998. Actrade's financial reports and other pertinent information may be accessed through the Internet via the World Wide Web at acrt.com. SOURCE Actrade International, Ltd.
CO: Actrade International, Ltd.
ST: New York
IN: FIN
SU: PDT
05/26/98 16:05 EDT prnewswire.com |
