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Press Release
GTREX Capital Announces Close of Escrow on Acquisition of Travel Businesses
Issued Monday May 15, 12:56 pm ET
ALISO VIEJO, Calif.--(MARKET WIRE)--May 15, 2006--GTREX Capital, Inc. (OTC BB: GRXIE), an investment company with holdings in emerging travel-related businesses, today announced the close of the escrow agreement to acquire all of the outstanding shares of Global Travel Partners, a Nevada corporation that owns 100% of AsiaWorld Travel Vancouver, Ltd., and Dominion Pacific Travel, two British Columbia based travel companies.
"The acquisition of these travel businesses significantly changes the profile of GTREX Capital's investment portfolio," said chairman and chief executive officer Christopher Berlandier. "GTREX immediately gains millions of dollars in annual revenues and brings travel industry attention with the addition of two leading wholesalers and consolidators of airline and hotel business in the Vancouver market."
AsiaWorld Travel is one of the largest hotel room wholesalers in the Vancouver region, and Dominion Pacific Travel served as 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).
For fiscal year 2005, AsiaWorld and Dominion Pacific Travel posted approximately $4.2 million in total revenues.
"Vancouver is a growing hub for travel to and from Asia, especially as a destination for China outbound, and as part of GTREX Capital's investment portfolio, we expect these two companies to become even more prominent players in the Vancouver market space. For GTREX Capital, we expect these acquisitions to create and solidify our links to China and lead to additional future acquisitions in the travel industry," added Mr. Berlandier.
Under terms of the escrow, approximately 600 million restricted shares of GTREX Capital common stock were released from escrow to affect the closing. Another 200 million restricted shares and $800,000 in long-term notes remain in escrow subject to certain performance guarantees by the sellers based on audited profits from operations on a six-month and 12-month basis. More detailed information will be included in a forthcoming Current Report on Form 8-K filed by the company.
AsiaWorld Travel and Dominion Pacific Travel are expected to become customers for GTREX Capital's wholly owned portfolio company, Global Travel Exchange, a leading provider of direct access travel distribution technology. By utilizing Global Travel Exchange's Voyager Network, which enables direct access to the reservation systems of major travel suppliers such as airlines, cruise lines, hotels, car rental companies and providers of other travel amenities, AsiaWorld Travel and Dominion Pacific Travel are expected to grow their businesses further, increasing both their revenues and their value for the GTREX Capital investment portfolio.
To sign up to receive information by email directly from GTREX Capital whenever new press releases, investor newsletters, SEC filings, or other information is disclosed, please visit http://www.gtrexcapital.com/investor.asp.
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. (www.gtrex.com), 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. A second portfolio company, Global Financial Exchange, was formed to manage and oversee the expansion of Global Travel Exchange's growing debit and cheque card business, which allow customers to pay for travel or any other products and services wherever the cards are accepted around the world and obtain money from automated teller machines. The cards also allow customers access to unique and affordable travel packages and inventory across the globe, as well as providing savings for users who order additional branded cards, including as a membership card with loyalty features such as discounts on travel products. GTREX Capital has signed initial agreements to acquire two travel businesses with 2005 fiscal year revenues of over $6 million.
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.
Contact:
Gemini Financial Communications, Inc. A. Beyer 951-587-8072 investors*gtrexcapital.com
-------------------- Penny stocks are often very volatile, and just as often unpredictable. - Peter Leeds
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