NEW YORK, February 28 /PRNewswire/ --
Escala Group (Nasdaq: ESCL) today announced that Escala and its subsidiary Spectrum Numismatics International, Inc. have entered into an agreement with Development Specialists, Inc. (DSI), offering to purchase certain coins, bullion and other coin-related assets for US$7.5 million. DSI, the liquidator responsible for managing the disposal of the coin inventory and assets formerly owned and managed by affiliates of the Capital Coin Fund in Ohio, is currently in the process of soliciting additional bids for these coin assets in the open market. Included among the 3,400 plus items up for auction are a number of U.S. $10,000 bills and many US$2-1/2 and US$5 gold coins from the early 1800s. The bidding process is scheduled to end March 29.
Jose Miguel Herrero, chief executive officer of Escala, commented: "We are pleased that the open bidding for the rare coin assets in Ohio concludes our discussions with William Brandt of DSI in a positive and constructive process for all parties. Escala's and Spectrum's agreement with DSI resolves all disputes between the parties related to the Capital Coin Fund and the related activities in Ohio. If Escala and Spectrum have the winning bid for these assets, we will acquire a significant and diverse inventory that will be utilized across all of our Numismatic companies, including Spectrum, Bowers and Merena Auctions, NACT, Teletrade and A-Mark Precious Metals."
About Escala Group, Inc.
Escala Group is a global network of leading companies in the collectibles market with operations in North America, Europe and Asia as well as on the Internet. The company operates through a number of subsidiaries that specialize in various sectors of the collectibles markets, and is comprised of three business areas: auctions, merchant/dealer operations and trading.
Escala Group's North American operations include Greg Manning Auctions division, Ivy & Manning Philatelic Auctions, Greg Manning Galleries, Greg Martin Auctions, Spectrum Numismatics, Teletrade, Nutmeg Stamp Sales, Superior Sports Auctions, Bowers and Merena Auctions, and H.R. Harmer. In Europe, the leading auction houses affiliated with the network are Auctentia Subastas (Afinsa Auctions) of Madrid, Spain, Corinphila Auktionen of Zurich, Switzerland, and the Koehler group of auction companies of Berlin and Wiesbaden, Germany. In Asia, Escala's auctions operations are conducted through John Bull Stamp Auctions, Ltd, the oldest philatelic auction house in Hong Kong.
Merchant/dealer activities are conducted through Greg Manning Auctions and Central de Compras Coleccionables, S.L. of Madrid, which act as exclusive suppliers of collectibles -- primarily stamps and coins -- on a worldwide basis to Afinsa Bienes Tangibles, S.A. of Madrid, Spain, and through Spectrum Numismatics International, one of the largest wholesalers of rare coins in the U.S. Afinsa is Escala Group's majority shareholder.
The trading activities of Escala Group are conducted through A-Mark Precious Metals, one of the largest private sellers of bullion coins and bullion gold, silver and platinum to the wholesale marketplace.
SAFE HARBOR STATEMENT
Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Factors that may cause such differences include changes in market conditions, changes in economic environment, competitive factors and the other factors discussed in the "forward-looking information" or "risk factors" sections included in Escala Group's filings with the Securities and Exchange Commission, including Escala Group's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, prospectuses and other documents that Escala Group has filed with the Commission. In particular, any statement related to Escala Group's expected revenues or earnings or Escala Group's being well positioned for future profitability and growth are forward-looking statements.
The words "should," "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan" and similar expressions and variations thereof identify certain of such forward- looking statements, which speak only as of the dates on which they were made. Additionally, any statements related to future improved performance and estimates of revenues and earnings per share are forward-looking statements. Escala Group undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.
Investor/Analyst Contact: Perry Hall
(+1-212-421-9400)
phall@escalagroup.com
ESCL
Investor/Analyst Contact: Perry Hall, +1-212-421-9400, phall@escalagroup.com
