LitFunding Acquires Easy Money Express; Enters Into Payday Loan Business
LitFunding announced that it has signed a Merger and Acquisition Agreement to acquire Easy Money Express, Inc. Morton Reed, LitFunding's CEO, was excited about the venture:
"The acquisition of Easy Money affords LitFunding with a highly profitable opportunity to leverage our capital at high yields with relative safety," he said.
Easy Money Express is an independent Internet and call center payday advance company. It will operate as a wholly owned subsidiary of LitFunding, developing a deferred deposit, consumer loan business that will specialize in providing short-term cash advances or payday loans.
Easy Money has developed an economical call center and Internet-based business model that permits applications to be submitted via the Web. Applications are processed almost instantly through highly automated software and the approved loans are directly deposited into the consumer's account, debited automatically the next payday. This allows the cash advance loan company to reach millions of customers, without the high cost of traditional "brick-and-mortar" retail locations.
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. The deal should be finalized March 31, 2006.