ATLANTA, GA (December 10, 2024) |
Dinewise, Inc (OTC PINK-DWIS) (referred to as "Dinewise", "we", "us", "our" or the "Company") a fintech company operating as PawnTrust Inc., providing solutions to the pawn shop industry today announces the signing of a letter of intent to acquire a fintech company named TitlePal.
Michael Farr, the CEO of the company, has swiftly set a strategic course to enhance the company's balance sheet, starting with the intention to acquire TitlePal. Mr. Farr recognizes the enormous potential in the title pawn industry, where over 2 million consumers borrow more than $6 billion annually through 8,000 storefronts. These customers, primarily working families facing unexpected financial needs, contribute to an industry that generates over $4 billion in fees on just $3 billion in principal loans—a remarkable return on investment.
TitlePal is revolutionizing the title lending industry with its cutting-edge online platform, setting a new standard in the FinTech sector. By targeting a modest 1% of existing storefront loan customers, the company plans to redefine customer experience through unparalleled convenience and efficiency. This innovative approach is expected to foster lasting customer loyalty, as borrowers increasingly prefer seamless digital solutions over outdated physical alternatives. TitlePal’s strategy echoes the disruption seen in other industries, such as the decline of Blockbuster Video in the wake of online streaming platforms.
"TitlePal has been evolving since the early 1990s it simply merged two traditional lending models—pawn and auto financing. " said Michael Farr. "Our core focus has always been auto financing. Initially, we acquired assets by purchasing vehicles at auction, selling them to customers, and financing their purchases. Over time, we transitioned to storefront-based title pawn, where customers brought their vehicles for financing. With TitlePal, technology now facilitates vehicle acquisition, allowing us to create assets more efficiently. This innovation represents the next evolution of our business."
Farr, who started his career in his father’s automotive empire in the 90's, views this acquisition as a transformative milestone for the industry. Company leadership emphasized that the terms of the agreement are strategically crafted to drive growth while minimizing shareholder dilution. The acquisition is expected to have an immediate positive impact on the company’s balance sheet, with projected revenues surpassing $15 million in 2025. Detailed terms of the acquisition will be disclosed upon its anticipated completion in Q1 of 2025.
In the interim, CEO Michael Farr intends to participate in a series of interviews, providing investors and shareholders a platform to connect with him, understand his vision, and address their questions directly. This proactive approach reflects the company’s dedication to transparency and its focus on fostering confidence in its long-term growth strategy.
About PawnTrust
PawnTrust is an exclusively tailored marketplace for the estimated 11,000 pawn shops nationwide. The online marketplace (www.pawntrust.com) digitizes the inventory using advanced image recognition algorithms to automate item descriptions of the participating pawn shops and markets them on a national scale. The marketplace contains cutting-edge technology that streamlines the borrowing, buying, and bartering transactions typically found at a pawn shop. The platform plans to leverage Artificial Intelligence (AI) to optimize pricing, reduce fraud, and create personalized search recommendations to enhance the customer's experience. These enhancements let consumers experience a frictionless shopping experience on their mobile app that gives them instant access to this nationwide inventory of pawn shops. Not only does this provide a more efficient way for consumers to shop, eliminating the need to visit multiple stores, but it also amplifies the reach of individual pawn shop owners. By joining the PawnTrust- 'Pawn Partners' network, shop owners gain access to a broader audience, enhancing their visibility and sales opportunities. This innovative approach aligns customer convenience with business growth, reshaping how people interact with the pawn industry. Consumers that purchase items outside of their local area will have their items conveniently shipped to them. As the intermediary in each transaction, PawnTrust earns a fee on every item sold in the marketplace. Many of these local pawn shops lack an online presence or the capital to market their inventory on a national scale. By bridging this gap, PawnTrust opens up opportunities for incremental sales from a wider buying base, effectively transforming the pawn shop and micro-lending industries. This model not only supports local businesses but also extends their reach, driving growth and innovation within the market."