Source: LitFunding Corp
LitFunding Corp., (OTCBB:LFDG), announced today that it entered into a binding letter of intent to acquire CardMart Plus USA Inc., on Friday, November 17, 2006.
CardMart Plus is an international debit card and e-commerce payment solution company. CardMart Plus, among other products, offers the Billetera-e Maestro Card as well as Payment Solutions to thousands of businesses and individuals worldwide. The Billetera-e Maestro Card is an International Pre-Paid, debit card with multiple loading options and direct deposit enabled with no funding limits.
According to the letter of intent, CardMart Plus and LitFunding will enter into a series of transactions whereby LitFunding will acquire CardMart Plus in exchange for a controlling interest in LitFunding, pursuant to the terms of a merger transaction that will be detailed in a subsequent, more definitive agreement. In addition, CardMart Plus will acquire 8 million shares held by Morton Reed, CEO of LitFunding. Further, CardMart Plus has agreed to fund $300,000 to Easy Money Express. CardMart Plus will operate as a wholly-owned subsidiary of LitFunding, with the management of CardMart Plus in control.
According to its Chief Executive Officer, Morton Reed, "The acquisition of CardMart Plus is expected to provide our company with a highly profitable opportunity to expand our financial services business by enhancing the Easy Money Express platform to include the ability to issue international ATM debit cards to its ever expanding client base."
The company reports that as a condition to finalizing the transactions contemplated by the letter of intent, the parties must mutually agree upon more detailed terms and conditions that are customary in transactions of this nature. LitFunding and CardMart Plus plan to enter into such an agreement on or before November 30, 2006. Further details of the proposed transactions are available in the Company's Form 8-K that was filed with the SEC today.