The new capital will fuel TRADE X's growth strategy and drive
forward its mission of eliminating barriers to buying and selling
pre-owned vehicles across international borders.
TORONTO, July 27, 2021 /PRNewswire/ -- Trade X Group
of Companies Inc. (TRADE X), a global B2B cross-border automotive
trading platform, today announced that it has received an equity
investment of C$44 million, or
US$35 million, from Aimia Inc. (TSX:
AIM), a Toronto-based holding
company that invests in public and private companies globally. An
additional US$10 million of
convertible preferred shares may be issued by TRADE X to other
strategic investors in a subsequent closing, to be held no later
than August 6, 2021, to achieve the
company's target round size of US$45
million. TRADE X will use the new growth capital for
strategic acquisitions, and to expand its cross-border platform for
pre-owned vehicle trading to car dealers, fleet, rental and
mobility solution providers, as well as importers and exporters
across North America, Europe, Asia,
Africa and the Middle East.
TRADE X simplifies the process of buying and selling pre-owned
vehicles internationally via its platform, accessible 24/7 via
mobile, tablet or desktop. The platform handles all processes,
procedures and documentation to ensure each transaction is
compliant, insured and monitored from start to finish. The fully
integrated platform is powered by TRADE X's proprietary
'Brain' technology, using machine learning and artificial
intelligence to enhance the user experience.
Users can search for and request specific vehicles, view global
pricing analytics, post vehicles for sale, assess economic
viability, leverage arbitrage opportunities, obtain trade financing
and transact in the currency of their choice. TRADE X handles all
quality checks, international payments, transport, logistics,
retitling, engaging registered importers, homologation, customs
clearance and speedometer conversion across borders, effectively
eliminating each complicated step previously being the
responsibility of the buyer to handle manually. TRADE X pays
sellers instantly in local currency, plus local tax, and all
transactions are conducted securely and compliantly. Users
must undergo a strict onboarding process to verify licenses, tax ID
and compliance with commercial regulations, and only after all
information is approved and verified are they granted access to the
TRADE X authorized network. By standing as the trusted third-party
escrow, TRADE X provides peace of mind and security for all users,
whether they are trading within their own continent or
overseas.
Led by auto industry veterans, Founder and CEO Ryan Davidson and Executive Vice President and
COO Luciano Butera, TRADE X is set
to disrupt cross-border trading in the pre-owned vehicle industry.
For the 12 months ending December 31,
2020, TRADE X achieved gross vehicle sales of C$65 million. Gross vehicle sales for the six
months to June 30, 2021, were
C$77 million, generating positive
EBITDA. With recent sales volume activity demonstrating strong
momentum, sales are expected to trend higher in the second half of
2021.
"The overriding global need for a unified automotive trading
platform has never been greater", said TRADE X's Ryan Davidson. "With this additional funding, we
will expand our reach across multiple continents, connecting buyers
and sellers beyond their borders to accelerate inventory turnover
and boost profits substantially."
TRADE X's Luciano Butera
commented: "There are multiple obstacles to international vehicle
trade: Buyers and sellers often have no real way to find each
other, buyers have no or very limited access to trade finance to
pay sellers up front, and most importantly, there is a distinct
lack of trust when doing business across borders. TRADE X solves
all of these issues, providing an integrated, fully transparent and
most importantly, compliant end-to-end global solution for
pre-owned vehicle transactions."
The financing round was completed at a pre-money valuation of
~$C314 million (US$250 million). As part of the transaction,
Aimia's CEO, Phil Mittleman, will
join TRADE X's Board of Directors.
"We are very pleased to lead this funding round for TRADE X.
Their proprietary TRADE X 'Brain' technology allows users to trade
vehicles cross-border with greater ease, and less transactional
risk than ever before," said Aimia's Phil
Mittleman. "Already having achieved EBITDA profitability,
TRADE X boasts a blue-chip client base, and is growing at a
remarkable rate as it expands its market reach to other countries.
We are proud to partner with TRADE X as they continue to grow their
business organically, and through acquisitions."
TRADE X's new equity funding follows a round of capital secured
in February 2021: a senior secured
revolving line of credit of US$50
million, including an accordion to expand up to US$100 million provided by a global asset
management firm with over US$100
billion in assets under management.
About TRADE X
With headquarters based in Ontario,
Canada, TRADE X is the first global vehicle marketplace to
aggregate cross-border supply and demand for car dealers, fleet,
rental, and mobility solution providers, as well as importers and
exporters, opening new trading corridors to buy and sell vehicles.
The TRADE X 'Brain' platform is a machine-learning, AI-driven
technology that connects buyers and sellers through a transparent
and highly effective marketplace that aids sellers in finding the
world's highest bidders and gives buyers access to the best source
markets. Users benefit from the global network from opportunities
to capitalize on price arbitrage where global markets command
higher vehicle prices. TRADE X enables users to seamlessly transact
online in a quick and secure environment with all the complexities
of international trade – compliance, anti-money laundering
regulations, vehicle inspection, currency exchange, digital trade
documentation, payments and financing – all managed by TRADE X. The
company serves authorized buyers and sellers everywhere with a
user-friendly app available 24/7 via mobile, tablet or desktop.
TRADE X's largest investors include Aimia Inc., a publicly traded
holding company listed on the Toronto Stock Exchange (TSX: AIM),
with a focus on long-term investments in public and private
companies, on a global basis, through controlling or minority
stakes. To learn more about TRADE X, please visit:
www.tradexport.com.
About Aimia
Aimia Inc. (TSX: AIM) is a holding company with a focus on
long-term investments in public and private companies, on a global
basis, through controlling or minority stakes. The company operates
an investment advisory business through its wholly-owned subsidiary
Mittleman Investment Management, LLC, and owns a diversified
portfolio of investments including a 48.9% equity stake in PLM
Premier, S.A.P.I. de C.V. (PLM), owner and operator of Club
Premier, the coalition loyalty program in Mexico that operates the Aeromexico Frequent
Flyer program, a 48.7% equity stake in Kognitiv, a B2B technology
growth company enabling collaborative commerce, a 12.7% equity
stake in TRADE X, a global B2B cross-border automotive trading
platform, a 10.85% stake in Clear Media Limited (100.HK), one of
the largest outdoor advertising firms in China, as well as minority stakes in various
public company securities. For more information about Aimia, visit
www.aimia.com.
Non-GAAP Financial Measures
Aimia and TRADE X considers "gross vehicle sales" and "EBITDA"
as useful information in measuring the financial performance and
condition of TRADE X. Such measures do not have a standardized
meaning prescribed by International Financial Reporting Standards
("IFRS") and therefore may not be comparable to similarly titled
measures presented by other companies, nor should it be construed
as an alternative to financial measures determined in accordance
with IFRS.
Forward-Looking Statements
This press release contains statements that constitute
"forward-looking information" within the meaning of Canadian
securities laws ("forward-looking statements"), which are based
upon our current expectations, estimations, projections,
assumptions and beliefs. All information that is not clearly
historical in nature may constitute forward-looking statements. In
some cases, forward-looking statements are typically identified by
the use of terms such as such as "anticipate", "believe", "could",
"estimate", "expect", "intend", "may", "plan", "predict",
"project", "will", "would", and "should". Forward-looking
statements in this press release include, but are not limited to,
statements with respect to our current and future plans,
expectations and intentions.
Forward-looking statements, by their nature, are based on
assumptions and are subject to known and unknown risks and
uncertainties, both general and specific, that contribute to the
possibility that the forward-looking statement may not occur.
The forward-looking statements in this press release speak only as
of the date hereof and reflect several material factors,
expectations and assumptions. Undue reliance should not be placed
on any predictions or forward-looking statements as these may be
affected by, among other things, changing external events and
general uncertainties of the business. A discussion of the material
risks applicable to Aimia can be found in Aimia's current
Management Discussion and Analysis and Annual Information Form,
each of which have been or will be filed on SEDAR and can be
accessed at www.sedar.com. Except as required by applicable
securities laws, forward-looking statements speak only as of the
date on which they are made and we disclaim any intention and
assumes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Media Contacts:
TRADE X
Patty Buchanan
JConnelly
(973) 567-9415
pbuchanan@jconnelly.com
Aimia Inc.
Tom Tran
Director, Investor Relations
(647) 208-2166
tom.tran@aimia.com
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SOURCE TRADE X