EZCORP, Inc. (NASDAQ:EZPW) Files An 8-K Regulation FD Disclosure

EZCORP, Inc. (NASDAQ:EZPW) Files An 8-K Regulation FD Disclosure
Item 7.01 — Regulation FD Disclosure

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EZCORP, Inc. owns 156,552,484 ordinary shares of our strategic affiliate, Cash Converters International Limited (“Cash Converters”), representing 31.75% of the total outstanding ordinary shares. Cash Converters is headquartered in Perth, Western Australia, and is a leading operator and franchisor in retail, second hand goods and personal financial services markets within Australia and internationally. Cash Converters has a network through corporate and licensing arrangements of over 700 stores in 18 countries. The range of services offered by Cash Converters stores varies, with pawn loans available in selected markets, as well as a personal finance business that operates in various forms in the micro-lending category around the world. The ordinary shares in Cash Converters are traded on the Australian Stock Exchange under the symbol “CCV.”

On May 30, 2018, Cash Converters launched an entitlement offer to raise AUD$39.5 million (the “Entitlement Offer). The Entitlement Offer provides eligible shareholders of Cash Converters with the opportunity to acquire new ordinary shares at an issue price of AUD$0.32 per share on the basis of one new share for every four existing shares. The offer price represents a discount of 12.8% to the 5-day volume weighted average price of the Cash Converters shares (AUD$0.367) and a 12.3% discount to the last closing sales price of the Cash Converters shares prior to announcement of the Entitlement Offer (AUD$0.365).

Immediately prior to the launch of the Entitlement Offer, we entered into a Commitment and Shortfall Underwriting Agreement with Cash Converters, to which we committed to acquire our full pro rata entitlement of 39,138,120 shares for AUD$12.5 million (USD$9.5 million). In addition, we agreed to acquire up to an additional 18,493,108 shares for AUD$5.9 million (USD$4.5 million) from the shares, if any, that are not taken up by eligible shareholders (the “Additional Shares”). Consequently, upon completion of the Entitlement Offer, our percentage ownership of Cash Converters will range between the existing 31.75% (if no Additional Shares are available) to a maximum of 34.75% (if the full number of Additional Shares are available).

Cash Converters will use the net proceeds from the Entitlement Offer to reduce outstanding indebtedness and provide additional capital to pursue growth opportunities while maintaining sufficient working capital.

The Entitlement Offer is scheduled to close on June 18, 2018, with a settlement date of June 26, 2018.

Note — USD$ amounts stated above are estimates based on the current exchange rate. Actual amounts will depend on the AUD$ to USD$ exchange rate at the completion of the Entitlement Offer.


EZCORP, Inc. provides pawn loans in the United States and Mexico, and consumer loans in Mexico. The Company operates through four segments: U.S. Pawn, which includes its EZPAWN, value pawn and jewelry, and other branded pawn operations in the United States; Mexico Pawn, which includes its Empeno Facil pawn operations and cash converters buy/sell store operations in Mexico; Grupo Finmart, which includes its Crediamigo and Adex payroll withholding loan operations in Mexico, and Other International, which includes its CASHMAX financial services operations in Canada and its equity interest in Cash Converters International. It offers pawn loans, which are non-recourse loans, collateralized by tangible property, and it sells merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers at its pawn stores.

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