A-Mark Closes Previously Announced Acquisition of LPM Group Limited, Marking A-Mark’s Expansion into Asia

EL SEGUNDO, Calif., Feb. 27, 2024 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ: AMRK) (A-Mark), a leading fully integrated precious metals platform, has closed its previously announced transactions with AMS Holding, LLC (AMS), a leading collector platform for the marketing and sales of vintage and modern coins. This transaction included the acquisition of LPM Group Limited (LPM), one of Asia’s largest precious metals dealers.

“Today is a significant day for A-Mark, as we complete the acquisition of LPM and expand our footprint into Asia,” said A-Mark CEO Greg Roberts. “It is also a significant day for LPM, its employees, customers, and partners, as LPM becomes part of one of the world’s largest diversified precious metals businesses. We plan to use LPM’s Hong Kong headquarters as our anchor in Asia to expand LPM’s direct-to-consumer business through our proven e-commerce expertise. We look forward to capitalizing on the consumer demand for precious metals throughout Asia with this strategic acquisition.”

LPM Acquisition Details
A-Mark has acquired 100% of the issued and outstanding equity interests of LPM from AMS for a total upfront consideration of $41.9 million, consisting of $37.9 million in cash and $4.0 million of A-Mark common stock. At the close of the transaction, LPM had a tangible net worth of $11.9 million inclusive of net cash and precious metals inventories. AMS has the potential to earn up to an additional $37.5 million in cash based on achievement of certain Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) targets for 2024, 2025 and 2026.

Pinehurst Coin Exchange Asset Purchase of ModernCoinMart
A-Mark’s affiliate, Pinehurst Coin Exchange, Inc. (Pinehurst), one of the nation’s largest distributors of modern certified coins of which A-Mark owns 49.0%, has acquired all the assets of ModernCoinMart (MCM) from AMS for $5.5 million. MCM is one of the fastest growing dealers in the U.S. and ships to many international destinations. As part of the asset purchase, Pinehurst has acquired $3.0 million of inventory, along with MCM’s customer list, brand name and related intellectual property.

Strategic Investment in AMS Holding

A joint venture consisting of A-Mark, Pinehurst and Stack’s Bowers Numismatics, LLC, an affiliate of A-Mark, has acquired a common equity interest in AMS equivalent to 10% of the total, fully diluted common equity interests in AMS for $6.19 million. As part of the transaction, A-Mark CEO Greg Roberts has joined the AMS board of directors.