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GTREX Capital Announces Agreement to Acquire Three Travel Companies with Projected 2006 Revenues Topping $6 Million
ALISO VIEJO, Calif., Dec 22, 2005 (BUSINESS WIRE) -- GTREX Capital, Inc. (OTCBB:GRXI) today announced that it has signed an initial agreement to invest in three Vancouver, British Columbia based travel companies with combined projected 2006 revenues of over $6 million (U.S.). The three businesses, which are each currently profitable, include ticketing and wholesalers in the greater Vancouver region and are also expected to become customers for GTREX Capital's wholly-owned portfolio company, Global Travel Exchange, a leading provider of direct access travel distribution technology.
Under terms of a Letter of Agreement, GTREX Capital will acquire a 100% equity position in AsiaWorld Travel Vancouver, Ltd., Dominion Pacific Travel, and GlobalNorth Travel Ltd. for stock and long-term notes. AsiaWorld Travel is one of the largest hotel room wholesalers in the Vancouver region. Dominion Pacific Travel is one of Vancouver's largest ticketing wholesalers for EVA Air (40 destinations on four continents, including Asia, Australia, New Zealand, Europe and North America) and China Airlines (59 destinations in 23 countries around the world).
These acquisitions are the first in what is expected to be a series of synergistic investments for the GTREX Capital portfolio. Many of the investments in travel companies will have the dual purpose of providing revenues and portfolio value for GTREX Capital, as well as building the supplier and customer base for Global Travel Exchange, whose Voyager Network travel distribution platform is expected to significantly improve the bottom lines of companies who use the technology.
"The acquisition of these three businesses dramatically changes GTREX Capital's position, diversifying its interests beyond the fortunes of just one business and providing for immediate revenues in its portfolio," stated Christopher Berlandier, chairman and chief executive officer of the company. "This agreement is the result of several trips to Vancouver and Asia over the past several months, where we conducted thorough due diligence and observed these businesses successfully operate firsthand.
"Each of these businesses was targeted for acquisition due to their current ability to bring immediate revenues and their potential for quantum future growth in the travel industry. The additional resources that GTREX Capital may provide to these companies, as well as the integration of Global Travel Exchange's distribution into their operations, are expected to foster growth beginning in the upcoming quarters," commented Mr. Berlandier.
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About GTREX Capital, Inc.
GTREX Capital, Inc. (http://www.gtrexcapital.com) is a Business Development Company pursuant to the Investment Company Act of 1940 whose core focus is to assemble an investment portfolio of investments into businesses related to the travel industry.
Its initial portfolio investment, Global Travel Exchange, Inc., has launched its Voyager Network travel distribution platform, which provides a service that enables direct access to reservation systems of major travel suppliers such as airlines, cruise lines, hotels, car rental companies and providers of other travel amenities. Through the Voyager Network searches for the availability and price for the itinerary suggested by the buyer over all direct connected suppliers and existing Global Distribution Systems (GDS), Global Travel Exchange presents the results in an easy to understand format. Besides improved brand and revenue management, suppliers save distribution costs while providing efficient service to major customers through a direct connection. Global Travel Exchange is positioned to market its services through travel distribution partners, contributing to the expansion of the Company's marketing channels and expedite revenue growth.
Safe Harbor Statement
This release contains forward-looking statements with respect to the results of operations and business of GTREX Capital, Inc., which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.
SOURCE: GTREX Capital, Inc.
Gemini Financial Communications A. Beyer, 951-587-8072 investors*gtrexcapital.com
Copyright Business Wire 2005
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