DGSE Companies, Inc. (NYSE MKT: DGSE) today announced that it has entered into a Loan Agreement (the “ Loan Agreement”) with its majority shareholder, NTR Metals, LLC (“ NTR”), through which NTR will provide to DGSE a guidance line of revolving credit in an amount of up to $7,500,000 (the “ Line of Credit”).
“Our new credit facility with NTR Metals grants DGSE the flexibility to pursue growth in our core business lines at terms that are extremely favorable to DGSE,” stated William Oyster, President and CEO of DGSE Companies, Inc.
The new credit facility carries an interest rate of two percent (2%) per annum for all funds borrowed pursuant to the Loan Agreement. Proceeds from the first draw of funds from the Line of Credit were used to repay DGSE’s indebtedness to Texas Capital Bank, N.A. (“ TCB”). Future funds drawn on the Line of Credit will be used as working capital in the ordinary course of business of DGSE.
John Loftus, President of NTR Metals, LLC, added, “Today’s announcement by DGSE Companies represents an important statement regarding NTR’s enthusiasm for DGSE’s current financial stability and future growth expectations.”About DGSE Companies, Inc. DGSE Companies, Inc. wholesales and retails jewelry, diamonds, fine watches, and precious metal bullion and rare coin products through its Bullion Express, Charleston Gold & Diamond Exchange, Dallas Gold & Silver Exchange, and Southern Bullion Coin & Jewelry operations. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities in Alabama, Florida, Georgia, Illinois, North Carolina, South Carolina, Tennessee and Texas, the Company operates internet websites which can be accessed at www.bullionexpress.com, www.dgse.com, www.cgdeinc.com, and www.sbcoin.com. Real-time price quotations and real-time order execution in precious metals are provided on another DGSE website at www.USBullionExchange.com. Wholesale customers can access the full vintage watch inventory through the restricted site at www.FairchildWatches.com. The Company is headquartered in Dallas, Texas and its common stock trades on NYSE MKT Exchange under the symbol "DGSE."