MINNEAPOLIS -- ATM provider Cash Systems, Inc. (OTC Bulletin Board: CSHS) has signed an agreement to acquire Chex Services, Inc., which provides check cashing, ATM and credit card cash advance services to several Native American casinos, from its parent company, Equitex, Inc. (Nasdaq: EQTX).
According to a news release, the agreement calls for Cash Systems to issue 9 million shares of its common stock to Equitex for all the outstanding common shares of Chex Services.
In addition, the agreement requires Chex to liquidate certain securities of Equitex that it owns, and to require payment of certain outstanding notes receivable of Chex, collectively resulting in the payment of approximately $4 million in cash.
According to a news release, Cash Systems expects the acquisition to significantly increase its full-service check cashing client base.
According to a Denver Business Journal report, Equitex acquired Chex Services in late 2001. Equitex had planned an initial public offering of Chex, which is based in Minnetonka, Minn., before deciding to sell the company instead. Earlier this summer, the Journal reported, Equitex faced delisting from the Nasdaq stock exchange because of its falling stock prices.
In 2002, Equitex lost $4.3 million on sales of $24.4 million.
