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AV1 GROUP, INC. Executives Announce Success in Corporate Visit to Mexico Headquarters; Strategic Partner Looks to Offer Exclusivity, Enhanced Terms of Partnership
NEW YORK, Aug 04, 2011 (LevelStock.com News) -- AV1 Group, Inc. (Pink Sheets: AVOPD), announces a breakthrough in its implementation of the company's Pawn Shop Franchise and Microlending operations in Mexico. AV1 Group's strategic partner, Respuesta Financiera S.A.de C.V. (RF), is a firm with extensive experience in operating pawnshops in the country of Mexico.
After last week's strategic planning session in Mexico City with AVOP executives, RF officials are now stating strong interest in granting AV1 Group Exclusive franchise rights in Mexico, beginning with the Yucatan Peninsula. AV1 Group officials are thrilled with the pending contract as it would allow both companies to expand operations, marketing efforts and overall revenue potential.
As stated in a previous press release by AVOP execs, "This is a very lucrative business and one that has been proven in far more cases than not to be beneficial to the economic well-being of communities and their citizens worldwide, especially in times of financial hardships, allowing them to convert illiquid assets into much needed cash. With this model, the average loan level is around $150, and fees collected can exceed 10% per month. With more than 70% of those loans repaid, profits are strong. In the event loans are not repaid, collateral is sold at retail margins of more than 30 or 40%. The industry as a whole is consistently showing revenue growth of around 16%."
AVOP CEO, Moussa Traore, states, "The proposed model in which AV1 Group will have exclusive rights to franchise gives us the leverage necessary to build RF's premier pawnshop brand, MonteLana in a profitable market with steadily increasing demand, while creating new microlending products of our own brand. It also mitigates risk on our side and is a testament to the confidence RF has in AV1 Group's abilities to permeate the Mexican market, beginning with the Yucatan Peninsula."
Safe Harbor: This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.
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