CHECK EXPRESS REACHES AGREEMENT IN PRINCIPLE
CHECK EXPRESS REACHES AGREEMENT IN PRINCIPLE TAMPA, Fla., March 5 /PRNewswire/ -- Check Express, Inc.
(NASDAQ: CHXS), owner, operator and franchisor of retail check cashing centers, today annoounced that it has reached an agreement in principle with Peter F. Borer, chairman of the board and president, pursuant to which Borer will acquire the company's operations in the state of Washington, including four store locations, cash and other operating assets, in exchange for 985,000 shares of common stock in the company.
Borer will have the right to continue to operate the Washington locations under the Check Express name. It is contemplated that Borer will resign his present positions with the company upon consummation of the exchange. Borer, a founder of the company, will be succeeded by Larry F. Lang, vice president and director and also a founder of the company. The transaction is expected to close on or about May 5. The transaction is intended to qualify as a tax-free transaction under Section 355 of the Internal Revenue Code. Consummation of the transaction is subject to certain conditions, including the negotiation and entering into of a definitive exchange agreement. However, the company believes such conditions more likely than not will be satisfied. The company estimates that the loss of revenues from the Washington operations will be approximately offset by the corresponding reduction in management overhead costs. Check Express, recently named one of the top five new franchisors by Success Magazine, currently operates 55 company and franchised retail money centers which provide check cashing, money orders, money transfers and related services. -0- 3/5/92 /CONTACT: Larry Lang of Check Express, 813-289-2888/ (CHXS) CO: Check Express, Inc. ST: Florida IN: REA SU: TNM PER
BR-BN -- AT007 -- 5407 03/05/92 11:25 EST
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|Date:||Mar 5, 1992|
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