GMS Capital Corp. (The "Company") (OTCQB: GMCP) announces today that it has entered into a financing agreement with Sterling Merchant Finance Ltd. of Washington, D.C. in order to expand its global distribution network. Sterling Merchant Finance Ltd. is a Washington, D.C. based merchant banking firm that is active in emerging countries (notably in Africa and with its Diaspora).
Sterling Merchant Finance Ltd. (Sterling) will commit $3 million to be used in part to finance the acquisition by GMS of a controlling position in a Canadian company that operates a major international distribution network. GMS Capital will use its control to rapidly expand its Nacara Brand line of specialized cosmetics as well as ramping up distribution of complementary brands in global markets. The investment will take place in two separate tranches of $1.5 million, with the first tranche to close in the coming weeks. In consideration of its investment, Sterling will receive a warrant series convertible into 898,204 common shares of the Company per $1.5 million investment tranche, representing a 12.085% ownership stake in the company.
"This alliance falls in line with one of our missions to promote businesses that cater to the needs of people of African and African-American descent, such as GMS Capital's Nacara cosmetics line for women of darker skin complexion," says Sterling CEO Sir Roger Jantio, who is of African descent.
According to Caroline Coulombe , Founder of the Nacara Brand and Chairman of GMS, "The Sterling investment will enable GMS to leverage its relationships with leading French, Canadian and African cosmetics retailers into an expanded global reach, to serve an ever greater number of consumers who require skin care products designed and manufactured for their specific needs."
"We will now have the capabilities to produce and distribute our cosmetics and skin care products on a truly global scale," says GMS President & CEO Martial Rolland .
ABOUT GMS Capital Corp.
GMS Capital Corp. (GMCP) conceives, designs and brings to market complete lines of quality cosmetic products for women of darker complexion. Its main consumer base consists of women with African, Hispanic and Mediterranean skin types who require specialty products which we offer through major retailers in North America and Europe. We own all rights to the Nacara Brand, a recognized leader in cosmetic and body care products for women who are inadequately served by the cosmetics industry. For more information, please visit http://www.nacara.com&esheet=50211389&lan=en-US&anchor=www.nacara.com&index=3&md5=fe4d8812cac6535a43177a6956b939ce" target="_blank">www.nacara.com.
ABOUT Sterling Merchant Finance Ltd.
Sterling Merchant Finance Ltd. is a merchant banking firm that offers financial advisory services in emerging countries and invest in promising business opportunities in Africa and in black owned businesses worldwide. For more information, please go to www.SterlingUS.com.
FORWARD-LOOKING STATEMENTS Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
For further information, please contact:
Martial Rolland, CEOGMS Capital Corp.1.514.714.6345
Philippe Sanchez, Senior AssociateSterling Merchant Finance Ltd.1.202.785.3500
SOURCE GMS Capital Corp.