San Diego, Calif. –
(PRWEB) November 07, 2012 -- Frontera is an alternative financial services company that serves the large and fast-growing low-cost consumer finance market. The company uses advanced technology and business processes to offer competitive prices on a wide range of financial products and services, including check cashing, loans (payday and gold jewelry loans) and money transfers.
Total purchase price was approximately $1.0 million plus 85% of the existing payday advances outstanding. The purchase price was paid from proceeds from the sale of Series A Preferred Stock. The closing occurred Saturday, November 3, 2012.
Frontera previously announced two new transactions that will provide working capital necessary to acquire existing stores and grow the gold jewelry loan business. The first transaction was a new $5 million senior credit facility from Salus Capital Partners (http://www.saluscapital.com). The second transaction was a $5.0 million preferred stock investment from MRC Capital Group (http://www.mrccapital.com), an existing investor in Frontera.
“We are very pleased to announce the addition of this profitable store in Sunnyvale” said Gilbert Partida, Frontera’s president and CEO. “This successful store will immediately increase our payday advance market share in California and add operating cash flow”. Furthermore, “we obtained a pawn license for this location which will allow us to add the profitable gold jewelry loan service at this store and significantly accelerate the payback on our investment.”
Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete expansion within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; ability to raise capital to support its growth strategy; changes in business strategy; and the successful integration of newly acquired businesses.
About Frontera, Investment, Inc:
Frontera (OTC: FRNV) is an alternative services company utilizing advanced technologies and operational systems to provide a growing array of low cost, one-stop-shopping financial services to the “unbanked” and “under-banked” consumer markets. The company offers competitive prices on a wide range of financial products and services, including check cashing, loans (payday and gold jewelry loans) and money transfers.
Frontera’s primary target market is the Hispanic sector, which is currently estimated to be more than 40 million customers. Over half of these Hispanic consumers do not use any form of banking service. Frontera’s immediate mission is to be the first full-service Hispanic financial services brand.
In addition, approximately 35 percent of all households (and growing) in the United States across the board are either un-banked, under-banked, or regularly use alternative financial services. Frontera is a prime, low-cost, high customer value option for consumers in these markets.
Frontera now operates eleven stores in California and two stores in Florida.
Visit http://www.fronterainvestment.com to learn more.
Investor and Media Contact:
Allan C. Youngberg, CFO
Frontera Investment, Inc.