Partners with New Institutional Investor Creates Special Purpose Entity to Increase Buying Power
NEW YORK, NY / ACCESSWIRE / January 23, 2017 / uSell.com (OTCQB: USEL), a technology driven company focused on extracting the
maximum value from used mobile devices, announced today that it has entered into a series of agreements with a new institutional
investor, giving uSell.com more flexibility and increased capital to purchase inventory and further grow its business.
The new 3-year credit facility of $8,660,000 replaces the Company's prior credit facility. The proceeds of the new facility were
used to pay off the $8,140,000 that was outstanding and to pay closing costs and fees.
In addition, the new investor and uSell.com created a new special purpose entity ("SPE") with equity funding from the investor
in the amount of $5,200,000. uSell will act as a service provider to the SPE, offering the service of buying smartphones from major
carrier and retailer trade in programs, triaging these devices, and then selling them to its global customer base. The SPE will
absorb all of the direct costs associated with inventory purchased through the vehicle, as well as any associated selling expenses.
The profits generated from the entity will then be distributed to uSell and the investor according to a predetermined schedule. To
avoid conflicts, the Service Agreement permits uSell to first use the new credit facility to purchase inventory for its own account
before using the SPE capital to purchase additional inventory.
Nik Raman, Chief Executive Officer, stated, "We are excited to have a new financing partner that will enable us to further scale
our business. With the additional capital, we can continue to solidify our position as a leader within the used smartphone
industry. Given that the industry is valued at $17B and is growing at 50% per year, it was essential for us to partner with an
institutional investor that we can scale with. We now have all of the tools that we need to execute our business plan."
While the formation of the SPE dramatically increases uSell's purchasing power, it does not dilute existing shareholders or
further leverage the company. The size of the SPE can be increased upon agreement of both parties.
About uSell.com, Inc.
uSell.com, Inc. is a technology driven company focused on extracting the maximum value from used mobile devices, at large scale.
uSell acquires products from both individual consumers, on its website, uSell.com, and from major carriers, big box retailers, and
manufacturers through its subsidiary, We Sell Cellular. These devices are then distributed globally, leveraging both a traditional
sales force and an online marketplace where professional buyers of used smartphones compete to buy inventory in an on-demand
fashion. Through participation on uSell's marketplace platforms and through interaction with uSell’s salesforce, buyers can acquire
high volumes of inventory in a cost effective manner, while minimizing risk.
Visit www.uSell.com and http://wesellcellular.com
Contact Information:
Nik Raman Chief Executive Officer p212-213-6805 nik@usell.com
SOURCE: uSell.com, Inc.
